Raw Materials Demand and It's Impact on the FIBC Industry 2021

Tu Phuong Jumbo Bags
Tu Phuong Jumbo Bags Team

The COVID-19 pandemic hasn’t not only affected your daily routine and kept millions home from work – it has also strongly impacted global supply chains. In some cases, supply chains around the world have been delayed, creating a scarcity of common products both in the household and within many industries. But how is this impacting the FIBC industry including Jumbo Bag, Container Bag, PP Big Bag, Sling Bag, etc? Let’s explore it now.

Global Supply Chains
As a result of reducing demands in all fields, global supply chains began to adjust and decreased their output. The cargo volume by ocean shipping vessels also reduces on international trade. To make things worse, a ship shut down the 2nd most trafficked canal in the world for six days resulting in massive trade disruption – said by BBC news.

Demand for goods is now increasing, and supply chains are scrambling to catch up. This has created massive demand for raw materials and causes scarcity never before seen in the FIBC industry.

Plastics’ Issues and their Impact on the FIBC Industry

Raw material is considered as the most important thing for the bulk bag industry as well as plastics ones. Polyethylene and polypropylene are two main ingredients in many FIBCs and their liners – and for that matter, most plastics produced and consumed worldwide. They’re also used in manufacturing most electronics – another industry that has seen an explosion in demand both during and post-pandemic. While a massive ice storm in the American South during February 2021 has shut down 80% of the US resin production.

As a result, both the woven polypropylene, polyethylene, and the resins that are involved in the manufacturing process of bulk bags are extremely scarce making production of the bags extremely difficult to impossible in some instances.

Impact on Availability of Bulk Bags and Prices

High demand & low supply causes prices increases and the FIBC industry is no exception. Price of Jumbo Bag have seen their largest price increases in years and these costs are being passed onto consumers. However, beyond simple price increases has also come supply shortages that currently have a significant impact on lead times (one of the other important thing at any business). But what can you do?

Contact Your FIBC Supplier Now!
It is more important than ever that you should contact with your FIBC distributor/ Jumbo Bag supplier as soon as possible to put in your orders for the year (especially before harvest season when demand for FIBCs spikes and supply will see the biggest shortages). If you can, ask your distributor about a generic in-stock solution if you’re currently having issues stocking a custom jumbo bag. If you’re able, buy in greater volume to be offered the best price.

If you are looking for a new supplier of Jumbo Bag, FIBC bulk bag with SWL 500kg to 2000kg, SF 5:1 or even SF 6:1, please do not hesitate to contact us. We are sure that we will bring you more benefit that you expected.

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