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Plastic raw material price

Price trend of plastic resins

The plastic raw material price is one of the most important factors affecting the IV set price. Our IV set wholesale price ranges from 0.065 USD/EACH to 0.09 USD/EACH, depending on the IV set size.

Plastic raw material price changes

Plastic raw materials price changes (from 2020 to 2021)

Price trend of plastic resins
Plastic raw material price chart

Price of PVC materials

The Bloomberg report dated March 18, 2021, titled “Plastic Prices Hit Record High to Stoke Inflation Concerns,” revealed that more than 60% of the US PVC manufacturers were still offline.

The drastic reduction in the production of PVC goods hiked up the price of the commodity to US$1625/ton, almost double compared to last year’s price. Although this price increase applies to regular PVC, the trend is also applicable to medical PVC, which is used in our disposable intravenous systems.    

PVC price trend
PVC price trend

Price of polypropylene (PP)

In 2019, the global price of polypropylene was approximately 1,064 US dollars per ton. Compared to the price in 2018, the price in 2019 was lower by 14 percent. Based on recent projections, however, the price of PP in 2021 will increase to 1,315 US dollars per ton. Worse, this projection was made before the outbreak of the COVID-19 pandemic. With the pandemic still going on and wreaking havoc on most industries all around the world, the price of PP in 2021 could still go up, possibly higher than 1,315 US dollars per ton. 

The predicted price trend for PP in the above agreed with the figures reported in Hong Kong. Based on the price trend of resins in May 2021, the cost of transparent PP was USD 1650-1750/ton, upped by 9.4% compared with its price of USD 1600/ton in December 2020. 

Price of polyethylene (PE) 

In the first quarter of 2021, there was a continuing shortage of PE in Europe. In March 2021, the cost of PE increased by EUR 75/ton. Worse, even before this new price was implemented, some producers announced an increase of EUR 200-250/ton.

Based on the price trend report in Hong Kong, the following were the costs in May 2021: HDPE = USD1260-1320/ton; LDPE=USD1600-1680/ton. 

Factors affecting plastic raw material price

Market drivers

Signing of the “American Recovery Plan Act”

President Joe Biden of the US recently signed into law the so-called “American Recovery Plan Act,” aiming to help Americans adversely affected by the COVID-19 pandemic. This is an economic relief law wherein. Among other things, one-off direct payments worth US$1,400 will be sent to most Americans, in addition to the weekly jobless benefit payments of US$300 until September of this year.

Unfortunately, although this move will surely help most Americans, it is an inflationary expenditure that pushed up all US dollar-denominated asset prices, which means people all over the world have to pay for it.

President Joe Biden of the US recently signed into law the so-called “American Recovery Plan Act

Coronavirus pandemic 

Aside from the blockage of the Suez Canal, the coronavirus pandemic significantly disrupted the supply chains of raw products. This reduced the supply, ultimately leading in, and inevitably to, the increase in the costs of raw materials and IV set price. 

Panic buying

In the first half of 2021, there was a good demand for raw products caused and fuelled by the coronavirus pandemic and the emerging supply shortage. Sensing increasing demand for the raw products, buyers secured more volumes, inducing panic buying and then amplifying the shortages further

What are plastic raw materials used in IV set?

Acrylonitrile butadiene styrene (ABS)

There are two types of ABS used in our products:

(1) Transparent AB

luer lock connector
Luer lock connector

(2) Regular ABS

IV plastic spike made of regulator ABS
Plastic spike

Transparent ABS is more expensive than regular ABS. The Luer lock connector is made of transparent ABS, while the plastic spike is made up of regular ABS. This substance provides impact resistance, toughness, and rigidity required of, and needed by, the plastic IV spikes of our products. 

Polyvinyl chloride (PVC)

PVC is another raw material that composes our infusion lines. Specifically, the IV drip chambers and the infusion tubes of our IV intravenous sets are made up of this substance. In addition, the PVC provides flexibility to our product parts.

IV drip chamber made of PVC
Drip chamber

Polyethylene (PE)

PE(HDPE) is the substance from which the roller clamps of our infusion systems are made, although ABS can also be used. PE provides the roller clamps of our infusion lines to resist plastic deformation at a lower cost

Roller clamp made of HDPE
Roller clamp

Polypropylene (PP)

This substance, PP, provides high resistance to plastic fatigue. Thus, the plastic part of our hypodermic needle has high resistance to breakages. 

When will the price of IV set raw materials fall?

Our underlying assumption

1. Before the end of the pandemic, there will be no turning point

As the United States prints $1.9tn money, this will lead to an overall increase in the global prices of oil, commodities, international trade, logistics, and transportation denominated in dollars.

2. After the pandemic is over, the high prices will still last for a long time

After the epidemic is brought under control, production capacity in Europe, the United States, and the world will be restored. However, at this time, the shortage of IV set raw materials will intensify, and the relationship between supply and demand will continue to be unbalanced.

Repercussions of the rising prices of raw materials

The increasing prices of IV set raw materials do not stop here. Indeed, they will have after-effects on the companies that will make use of them. Specifically, medical device companies that produce infusion sets will be adversely affected because their products need the raw materials discussed here: PE, PVC, ABS, and PP. For these companies to maintain their viability, they do not have other recourse but to increase the prices of their finished products.     

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Tag: produce IV set Tag: ABS roller clamps Tag: raw materials prices Tag: IV set part Tag: IV set price Tag: double drip chamber Tag: IV set wholesale price

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