Plastic Prices Continue to Rise and Stock Shortages, Traders Fear Business at Risk

JAKARTA, KOMPAS.com - A sense of unease has persistently troubled the hearts of plastic traders in traditional markets over the past few months. In addition to the sharply soaring plastic prices, they are now struggling to obtain stock of goods. The difficulty in securing stock has left one plastic trader at Kalibaru Market in Cilincing, North Jakarta, named Nando (48), fearing that his business might go bankrupt. Nando said that he usually receives stock from plastic sales representatives who come to his shop. He simply notes down the types of plastic he wants to order, and they are later delivered by the sales reps. Before the prices skyrocketed, the sales reps always fulfilled Nando’s orders with ease. However, now the sales reps only come to take notes of Nando’s orders without being able to guarantee that the goods will arrive as requested. “We place a lot of orders, but only a portion of the goods arrive, and even many sales reps honestly say that there is no more stock in the warehouse,” Nando stated. Nando believes that the limited plastic stock is caused by the unresolved conflict between the United States and Israel against Iran. In addition, the Strait of Hormuz, which is a passage for oil tankers, remains closed. After all, the main raw material for plastic is oil, so many plastic factories have currently stopped production. Nando admitted that he has no other way to cope with the price increases that have occurred over the past few months. “How can we cope with it? If it rises, it rises; we can’t possibly absorb the losses ourselves. If you want to buy, go ahead; otherwise, look for another shop, maybe there’s one that’s kind-hearted and offers low prices to attract customers,” he said. However, his decision to raise plastic prices has drawn protests from buyers and caused his customers not to return for shopping in recent months. Losing customers has led to a decline in his sales turnover of around 20 to 30 percent. Another plastic trader, Ipang (22), also admitted that he has no strategy to deal with the worsening plastic price increases. He can only raise selling prices to maintain profits and keep his business running.