Inventory Catchup/Superfund Excise Taxes
Round 2 of our quarterly report comes during a continued interesting time in our industry. May and June seem to have been inventory catchup months in most segments of the industry as customers work to clear their existing finished goods inventory and are pushing back orders. This is not limited to just the PVC industry as even the big box retailers are talking about their overly crowded warehouses.
Superfund excise taxes are back and will affect the Performance Additives product line. More details on how much it will affect us below.
Chlorinated Polyethylene (CPE) – Immediate Availability
Call your sales rep for pricing
We have rigid and flexible PVC grades of CPE available for sampling and, in some cases, immediate commercial supply.
Superfund Excise Tax Hits Plastics July 1
With the November 2021 passing of the Infrastructure Investment & Jobs Act by the current administration, a Superfund excise tax has been reinstated to take effect July 1, 2022. This tax will affect many resins and plastic feedstocks including a large majority of those in the Performance Additives portfolio. At rates as high as $10.00/ton (or $200/truckload), this tax will be reflected in a separate line item on all applicable invoices.
PVC Pricing Took First Dip in 2 Years in Europe
A recent Plastics News article pointed out that PVC pricing took its first dip in two years at a rate of $0.02/lb. Is this a sign of raw material pricing beginning to fall? The same article points out that many other raw materials stayed flat or increased significantly (styrene and butadiene for example) so we are not out of the woods yet, but it does seem to have reached a peak.
Performance Additives is working to manage our existing inventory as efficiently as possible so that we can take advantage of any price decreases. Of course, the heavy inventory from pushed back orders will delay the net effect for our North American customers.
