by David Maloney and Courtney Penta –
When you’ve been in this industry as long as many of us have, you’d like to think you’ve seen it all. So is this just another cycle? Another go‑around? If so, then so what, right? We’ve been here before.
Many of us lived through the crash of 2008, During the financial crisis, demand dried up overnight and historic prices escalation turned downward quickly.
When COVID hit in 2020, commodity resin pricing skyrocketed into the $1.50s in a relatively short time.
Even the Texas freeze, an event that only lasted a few days, produced dramatic price increases that were felt for the better part of six months.
So why is the current situation being viewed as unique? Why does this feel different? Haven’t we “seen this movie before”?
I’ve had this conversation with many experienced colleagues and customers over the past several weeks, and the general consensus is that this crisis really is different. Unlike past cycles that were driven by localized events; a weather disruption, a financial shock, or a demand surge affecting one segment of the market, this situation is rooted in a global feedstock and petrochemical disruption. The conflict is impacting crude, condensate, natural gas liquids, and critical intermediates that feed the entire petrochemical value chain.
When those inputs are disrupted or repriced on a global scale, the effects cascade simultaneously across fuels, chemicals, plastics, logistics, and manufacturing. That’s why the pace of change feels unprecedented.
Price signals are moving faster than normal, volatility is showing up everywhere at once, and even experienced market participants are struggling to model where things ultimately settle. No one knows with confidence where pricing will peak, how long it will last, or how quickly it may retreat once conditions normalize, and opinions vary widely on what the downside will look like and how fast it may come.
I’ve been selling resin for approximately 35 years, and I don’t recall a time when there were three upward spot price increases in a single week. It has also become increasingly unclear what specific materials will be available at any given time.
For customers, and for their customers, the challenge of keeping pace with pricing through the supply chain has become more complicated. Virtually everyone involved is frustrated and impatient with the current level of disruption, even though, in the grand scheme, this situation is still relatively young. Rising logistics costs have only added another layer of pressure.
So what’s to be done in an environment like this? It’s extremely difficult to offer perfect, textbook consultative advice when the market is being shaped in real time by the daily realities of a geopolitical conflict. There simply isn’t a playbook for this level of uncertainty. The best path forward right now is constant communication. All parties throughout the supply chain need to remain in close and transparent contact.
While no one can predict the exact timing of when this crisis will end or when the market will definitively turn, what can be done is to stay tightly connected to current market realities.
At Genesis Polymers, we focus on providing the most up‑to‑date information available. We are in regular contact with producers and often have insight into market direction and producer intentions as conditions evolve. We also work closely with customers to identify alternative materials when standard grades become unavailable or constrained. In short, Genesis Polymers strives to be a reliable partner to both our producers and our customers.
We are fortunate to work with producers such as Shell and Heartland, with assets that were built to weather market turmoil such as this.
If you’re struggling to secure ratable supply during the current geopolitical conflict and market disruption, I encourage you to reach out to Genesis Polymers through our website below. We will do everything possible to keep your plant operating and help guide you through these challenging conditions.
There is light at the end of the tunnel.
Genesis Polymers is committed to helping our customers navigate this period as smoothly as possible.
Hang tough. We will get to the other side of this, together.
Part of “The Difference Is Personal” Series
