The Southern African Plastic Pipe Manufacturers Association (SAPPMA) aims to keep its members and industry stakeholders informed about anticipated price increases or fluctuations in the cost of raw materials, particularly High-Density Polyethylene (HDPE) and PVC.  While SAPPMA operates within the strict regulatory framework set out by the South African Competition Commission and cannot engage in discussions that may be perceived as anti-competitive, we remain committed to keeping our members informed by tracking and reporting on international resin price trends.

Global Factors Influencing Resin Prices

International resin prices are influenced by several key factors, which may contribute to further price fluctuations in 2025. These include:

• Crude Oil and Natural Gas Prices:  As primary feedstocks for polymer production, fluctuations in crude oil and natural gas prices directly impact the cost of polyethylene and PVC resins.
• Supply Chain Disruptions: Continued geopolitical tensions, logistical challenges, and supply constraints in key exporting regions may result in price volatility and extended lead times.
• Global Demand Trends: Economic recovery in key markets, increasing infrastructure development, and demand for plastic piping solutions in sectors such as construction, water management, and agriculture are expected to influence resin demand and pricing.
• Environmental and Regulatory Factors: Stricter environmental policies, carbon emission regulations, and sustainability initiatives could impact production costs and availability of virgin polymers.
• Production Capacity and Force Majeure Events: Unexpected plant shutdowns, extreme weather conditions, or natural disasters affecting major resin producers can lead to supply shortages and price spikes.

Commitment to Transparency and Industry Support

SAPPMA remains committed to supporting its members and the wider industry by providing accurate and reliable industry insights. While we do not participate in price negotiations or forecasting, we continue to monitor global polymer markets and provide our members with objective information that are 2 month retroactive through the Polymer Index which is published monthly on our website. 

The December 2024 Polymer Index values were:

- PVC: 132

- HDPE: 184 

These figures are based on published international polymer prices, with a freight component factored in, converted to South African Rand, and then indexed. Given the inherent lag of approximately two months between the index value and the actual trading month, the December 2024 figures reflect prices observed in the global markets during October 2024. The primary purpose of publishing these index figures is to enable responsible calculation of contract cost with standard escalation formulae.

Calculations for the Polymer Index are conducted with the utmost care, using reputable sources. However, SAPPMA does not accept any liability related to the use of this data and advises members to conduct their own due diligence when making procurement and pricing decisions.