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2017 Hurricanes Affecting Availability and Pricing of Plastics

2017 Hurricanes Affecting Availability and Pricing of Plastics
Source: USA Today

Hurricane Harvey and Hurricane Irma have caused widespread damage in Texas, Louisiana, and Florida. In addition to the devastating human impact of the hurricanes, there have unfortunately been significant disruptions to some of the supply chains that serve Rubbermaid and other U.S. manufacturers of resin-based products.
  • All major resin suppliers have declared force majeure, resulting in many customers being placed on supply allocation and having negotiated price contracts voided.
  • The U.S. resins industry suffered sustained losses of production:
    • 70% of the U.S. Polyethylene capacity was offline for 3-4 weeks;
    • 60% of the U.S. Polypropylene capacity was offline for 3-4 weeks;
    • 30% of U.S. PET capacity was offline for 3-4 weeks; and
    • At least one major supply facility suffered catastrophic damage and will be out of service for an extended period of time.
As a result, there has been a shortage of supply of the raw materials used in production of manufactured resin-based products and we have experienced a sudden and sharp increase to our costs on many products. We expect this situation to persist through the balance of this year and into next as resin suppliers ramp production in the face of large pent up demand. We are working with our suppliers to ensure product availability as much as possible. Our goal is to continue to serve our customers as much as possible with adequate supplies of the affected products.

Resin-based surcharge by product category effective October 1st, 2017, are as follows:

Product Category Surcharge %
Material Handling
Utility Refuse
Mop Buckets
Commercial Accessories and Safety
8%
8%
8%
8%

Below you can download Excel-compatible lists of affected products. We will update theselists as changes occur, and will keep our customers informed of any significantdevelopments in this matter.
If you have any questions, call your Mailender representative at 800-998-5453.
 

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