Plastic is a versatile element that has become a crucial part of modern life, used in everything from packaging to automotive areas. So are you wondering what raw materials are used to make plastic? Understanding the different input materials to create plastic is essential for both manufacturers and consumers. In this article, let’s get to know more about lists of common plastic raw materials, and discuss factors that affect their prices, as well as offer strategies to navigate the complex market of plastic raw materials effectively.
1. Overview Of Plastic
A plastic is a type of synthetic or artificial polymer resembling natural resins found in trees and other plants. Polymers are any of various complex organic compounds produced by polymerization, a process where small molecules merge to make a very large chainlike molecule.
Most plastics contain organic polymers. A large proportion of these polymers comprises chains of carbon atoms, pure or with oxygen, nitrogen or sulfur. The chains have several repeated units, composed of monomers. Each polymer chain has several thousand repeated units. The backbone is the main section of the chain that binds a large number of repeat units together.
Polymers can be molded, extruded, cast into various shapes and films, or drawn into filaments for use in textile fibers. It makes the material able to adapt accordingly and is useful in various ranges of applications. This adaptability, plus a wide variety of beneficial properties, such as being lightweight, durable and flexible, alongside cheap manufacturing methods, has contributed to widespread acceptance in contemporary society.
Read more: What is plastic? Everything you need to know about plastic
2. A List Of Common Plastic Raw Materials
Most modern plastics come from fossil fuel-based petrochemicals such as natural gas or petroleum, etc. However, the most recent plastic manufacturing processes use alternatives manufactured from renewable materials such as corn or cotton derivatives, etc. Let’s delve into a list of common plastic raw materials below:
2.1. Petroleum (or crude oil)
According to a study called Fueling Plastics: Fossils, Plastics,& Petrochemical Feedstocks, More than 99% of all plastics are made from materials derived from fossil fuels. However, there are hundreds of different types of plastic, and not all of them are made the same way. The biggest group of plastics are known as synthetic plastics which are most often made with petroleum.
Petroleum-based plastics are made from synthetic organic polymers derived from oil or natural gas and are used in almost every aspect of modern society, including homes, workplaces, and automobiles. Petroleum, or crude oil, is made from animal and plant matter that endures heat and pressure underground for millions of years. Turning crude oil into the plastic we use in our everyday lives requires a complex process.
2.2. Natural gas
Natural gas is the starting point for the production of a large part of plastic production. The cracker factory was the first to use natural gas to make plastic. Naphtha (a product based on crude oil) and ethane (natural gas liquid) are converted to ethylene in the cracking operation. Ethylene is used as a starting point for a wide range of chemical and plastic products.
A pipeline is then used to transport the ethylene produced during the cracking process to another facility, where it is converted into a usable commodity, often polyethylene. Polyethylene is the most widely used plastic today and it is the polymer that is mostly used in the packaging industry.
2.3. Coal
In recent years, coal has remained a useful resource for reasons unrelated to burning it for fuel and energy, including producing materials that convert methanol from coal to plastic. There is a technology called Advanced Methanol-to-Olefins (MTO), which involves using coal and natural gasses to create ethylene and propylene that we see in many of the plastics we use today.
The process of converting coal to ethylene and propylene is a two-step process:
- Coal or natural gas to methanol
- Methanol to olefins using the MTO technology, which can be made into plastics
2.4. Cellulose
Cellulosic plastics are actually bioplastics that are produced by processing cellulose or cellulose derivatives into plastic. Cellulosic plastics are made from softwood trees, which are used as raw materials. After extracting the tree bark, it can be used as an energy source in the production process. The tree is processed or heated in a digester to separate the cellulose fibers from the rest of the tree fiber.
Softwood is considered as the most common raw material used in the production of cellulose plastics. Among the limitations of cellulosic plastic manufacturing, we can mention anti-deforestation laws and the low cost of conventional plastics, which reduces the growth of the cellulosic plastics business.
2.5. Other raw materials
Besides cellulose, plastics are also made from renewable biomass such as:
- Terpenes
- Vegetable fats and oils
- Carbohydrates (sugars from sugar cane etc)
- Recycled food waste
- Bacteria
These alternatives help reduce reliance on fossil fuels and can contribute to more environmentally friendly plastic production.
Read more: How are bioplastics made?
3. Factors That Affect Plastic Raw Materials’ Price
We can now explore more factors that influence plastic raw material prices in this part.
3.1. Source of material
Obtaining plastic raw materials can be very expensive. When mines run out of certain metals or minerals, harsh winters kill crops, or large forest fires destroy lumber, the supply of raw materials decreases. Demand may stay the same or even increase, but with reduced supply, prices go up.
3.2. Transportation
Transportation costs can significantly impact plastic raw material prices, especially with export/import taxes and levies. Supply chain disruptions can also reduce supply and increase prices. Additionally, higher fuel costs for transportation modes like air, land, rail, or sea will raise raw material prices.
3.3. Labour
Labor costs significantly affect plastic raw material prices throughout the supply chain. Labor shifts, like strikes, can reduce the workforce, decreasing supply and increasing prices. Labor in developing nations is cheaper but often criticized for unfair wages and poor conditions. Paying higher wages and adhering to developed nations’ standards would increase labor costs and raw material prices.
3.4. Quality
Plastic raw materials are often extracted and processed to varying degrees of quality or purity. It is another interesting point to consider with regard to raw material pricing.
Higher-quality raw materials, which are purer and more refined, generally cost more because they offer better performance and durability. These materials often have fewer impurities and superior properties, such as increased strength or clarity. Conversely, lower-quality plastic raw materials are usually cheaper due to their simpler processing and basic characteristics. The quality of these raw materials influences their effectiveness and longevity in plastic products, thereby affecting their market price.
3.5. Global market conditions
Global markets profoundly influence plastic raw materials prices. For example, increased demand for electric cars could lead to a spike in lithium prices, a critical raw material for battery production.
3.6. Taxes and customs
Procurement isn’t just about purchasing; it includes navigating the complex terrain of taxes and customs charges. For instance, import duties and value-added tax (VAT) are typical consumption taxes that inflate the cost of procured goods from overseas.
3.7. Quantity
Businesses can leverage economies of scale to reduce per-unit costs. Bulk buying often leads to lower prices, but it’s a delicate balancing act. Overstocking can lead to increased warehouse expenses and the risk of spoilage or obsolescence, particularly for perishable or trend-sensitive items.
4. Strategies For Manufacturers And Consumers
Reducing raw material costs is complex and needs careful planning and execution. It usually involves focusing on cutting procurement expenses through various strategies. Here are some practical approaches:
- Build supplier relationships: Develop strong partnerships for better pricing and reliability.
- Explore alternatives: Use alternative or recycled materials to reduce dependency on expensive plastic raw materials.
- Optimize processes: Improve production efficiency to minimize waste and lower costs.
- Integrate technology: Utilize automation and data analytics to enhance productivity and reduce costs.
- Forecast demand: Align raw material purchases with actual demand to avoid overstocking and waste.
- Monitor markets: Stay updated on market trends to make informed purchasing decisions.
- Adopt sustainability: Implement recycling and renewable materials to cut costs and support environmental goals.
5. Conclusion
Understanding the various raw materials used in plastic production and the factors that influence their prices is crucial for both manufacturers and consumers. By being aware of these dynamics, stakeholders can make informed decisions, optimize costs, and contribute to more sustainable practices in plastic production. As the industry evolves, staying informed about new materials and technologies, as well as market trends, will empower stakeholders to adapt and thrive in a changing landscape. Embracing innovation and sustainability will not only enhance operational efficiency but also support the global transition towards more environmentally responsible plastic production.
6. About EuP Egypt
EuP Egypt is strategically positioned to become a major exporter of high-quality plastic and additives to the Middle East, Africa, Europe, and the Americas. With advanced manufacturing facilities and stringent quality control processes, EuP Egypt guarantees that its products are reliable and efficient.
With its extensive expertise and innovative solutions, EuP Egypt is dedicated to helping manufacturers improve their products, including solutions to restore faded plastic, ensuring the products meet the highest quality and durability standards. Contact us today to explore how our comprehensive plastic raw material solutions can elevate your manufacturing capabilities.
