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Feb 23, 2021

National Resin Shortage


The recent storms in Texas and Louisiana have caused a major production interruption for all 4 major US resin suppliers. As of today, 3 of the 4 have enacted force majeure and will start limiting supply of resin to all customers.
Category: General
Posted by: electrolink

PVC Electrical Pipe Market Update:

We would like to update our customers on the current state of the PVC electrical market, which has gone through some dramatic changes during 2020 and now into 2021. The recent storms in Texas and Louisiana have caused a major production interruption for all 4 major US resin suppliers. As of today, 3 of the 4 have enacted force majeure and will start limiting supply of resin to all customers. The storms also forced a lengthy shutdown of several PVC pipe plants, putting more stress on an already tight supply.


PVC prices had already been increasing due to rising ethylene costs, production problems limiting the supply and strong demand for PVC products in most sectors. The current situation is expected to push PVC prices higher in the coming weeks and months.


The reality is demand currently dramatically exceeds supply, and this has created a strain on the electrical PVC pipe supply. The events of the last week are certain to extend the timeline for recovery. Additionally, PVC pipe manufacturers continue to experience shutdowns or operational delays due to COVID 19, which will hamper their ability to get production in line with demand. This market condition will certainly continue through the first half of 2021, and some effects will most likely linger all year.


We appreciate your business and look forward to working with you in the future for all of your PVC electrical product needs. If you have any questions, please do not hesitate to contact your local CANTEX representative or CANTEX directly.


Regards,
Dave Milius
Cantex – VP of Sales & Marketing
vpsales@cantexinc.com

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