Second Advance Notice – Geotextile Market Continuing Upward Pricing Pressure
We want to issue a second advance notice that the geotextile market is continuing to experience upward pricing pressure due to recent disruptions in global shipping and petrochemical supply chains. Public reporting shows that tanker traffic through the Strait of Hormuz was sharply reduced after the late-February escalation, and industry sources have reported that petrochemical flows and resin markets have been affected as a result.
The chart from CNBC illustrates the shipping disruption contributing to current market pressure. It shows a steep decline in oil-tanker traffic through the Strait of Hormuz beginning after Feb. 28, aligning with broader public reporting on the interruption to regional shipping activity.
Because geotextiles are manufactured from resin-based raw materials, changes in resin and polymer pricing can quickly affect production costs. Reuters reported that the conflict and resulting shipping disruption have tightened petrochemical supply and pushed plastic pricing higher. In parallel, industry resin market reporting indicates that suppliers across multiple commodity resin categories have already issued increases, with additional upward pressure expected in the near term.
At this time, we are monitoring conditions closely and working to secure supply where possible. However, given the current market environment, we believe additional price increases, increased manufacturer lead times, and broader supply chain disruption are likely to continue flowing through the market in the weeks ahead.
Our team is actively working with both our global and North American supply network to help maintain the high level of service, availability, and responsiveness our valued customers expect from us. We want to provide as much advance visibility as possible so projects, purchasing schedules, and material planning can be managed proactively.
Thank you for your continued partnership and trust in our team. We will continue to share updates as conditions develop and remain focused on delivering the service and support our valued customers rely on.
Sources:
https://lnkd.in/gGXegqQA
https://lnkd.in/eKptbf24
