Since plastisol is a petroleum type product??

[ghostbaits]

Whay is the cost of plastisol dropping since the raw material is half of what the previous cost was.

Not nieve that there is processing and packaging costs but raw material is lower....

Jim

[ctom]

Most of the components that go into the making of plastisol are bid on and bought a year or more in advance of actually getting the product, much like futures on grains and corn. If the price of petroleum at the time of the bid is high, the plastisol will reflect that high cost. The same products bid on and bought or ordered right now will not show the decrease until it is actually delivered, maybe up to a year or more from now.

[ghostbaits]

So plastisol will be half the cost next year?

Awesome.... lol

Jim

[Edgecrusher]

Yeah, can see that happening!

[Denny Welch]

Oh good.  That means the cost of baits will also go down.  I don't think think I'll hold my breath on this one.

[ghostbaits]

Guess we should just bank that extra savings at the pump and buy more molds. I paid $1.92 today.

Jim

[andrewlamberson]

Yeah...Denny is probably right...don't hold your breath.

PVC is  57% chlorine (salt) and 43% carbon (oil)... it is one of the least oil dependent plastics.

[Thump Huntin]

Mmm-hmm not holding my breathe either. Don't see prices decreasing. If anything they will stay the same and eventually go up in price like everything else over time.

[Denny Welch]

Guess we should just bank that extra savings at the pump and buy more molds. I paid $1.92 today.

Jim

Ca. weather...the yin

Ca. politics...$2.50 +\-....the yang

[ghostbaits]

PVC is  57% chlorine (salt) and 43% carbon (oil)... it is one of the least oil dependent plastics.

If 43% of my cost went down 50%, I would lower my prices while smiling the WHOLE day!!!! Huge cost savings.....

Jim

[Do-It Corp.]

Jim,

Interesting topic, so I dug into it a little more yesterday when talking to our factory.  Many of the same points were reiterated to me.

1.  As Andy pointed out, only a certain percentage of the material is "petroleum based".  One piece of info new to me is that most of our components come from natural gas, which has not seen such a dramatic drop as crude.

2.  The plastic industry is not as agile as the gasoline business.  As Tom stated, the cost of raw goods right now is reflecting previous purchases.  Also was told, "even if they see some decreases, they just cant go out and change the price at the pump."  So, most of their costing decisions are made on where they think the price is going

With that said, they are starting to see a "softening" in pricing.  I have not seen any price reduction and like others, will not hold my breath.

[ghostbaits]

Jim,

Interesting topic, so I dug into it a little more yesterday when talking to our factory.  Many of the same points were reiterated to me.

1.  As Andy pointed out, only a certain percentage of the material is "petroleum based".  One piece of info new to me is that most of our components come from natural gas, which has not seen such a dramatic drop as crude.

2.  The plastic industry is not as agile as the gasoline business.  As Tom stated, the cost of raw goods right now is reflecting previous purchases.  Also was told, "even if they see some decreases, they just cant go out and change the price at the pump."  So, most of their costing decisions are made on where they think the price is going

With that said, they are starting to see a "softening" in pricing.  I have not seen any price reduction and like others, will not hold my breath.

Great info.. Thanks!

Jim

[andrewlamberson]

Of that "43%" that is carbon based...that's just the raw material cost that went down. At best, the raw material  is less than 50% of their total manufacturing cost....for that 43%.

You still have transportation, refining, converting,  and labor costs going up.

Plus PVC is made from both oil and natural gas and I believe it relies heavily on natural gas (when crude oil prices spiked the industry moved to natural gas). So again, not much of a price decrease.

In addition, plastisol is not 100% PVC. There is the plasticizer(s), heat stabilizers and in the final formula....thus diluting (pun intended) the cost savings.

I'm not holding my breath!

[jmatheny9]

I agree with using the gas savings to buy plastisol lol. $2.49 here and $2.02 an hour south of me... What? Still in the same state too!


  -Jeremiah         Bullfrog lures