Cost saving solutions in turbulent times for raw materials

Water is the lifeblood of humanity. Clean drinking water is far from guaranteed everywhere. Water supply and drainage are global problems, and plastic pipes play an important role.

Water is the lifeblood of humanity. Clean drinking water is by no means a given everywhere. Water supply and drainage are a global problem in which plastic pipes play an important role. Whether for sanitation or transporting water over long distances to reach arid areas, plastic pipes are the most durable and safest solution. Like almost any other raw material, Polyvinyl Chloride, the main material in PVC plastic pipes, has hugely increased in price. Next to price, the availability of sufficient material is another problem...

Did we find any substitute for this material?

Graph a

Graph b

As graph a, attached to this article, reveals, in October 2021 PVC recorded its peak price in the last five years, reaching USD 12.435 per metric ton. For instance, in October 2016, the price per metric ton was around USD 5.000.

While looking at graph b, at what has been happening since October 2022, it is evident that the PVC price is remarkably starting a new lift.

Moreover, different parties, such as Statista or WalletInvestor (see graph c), forecast even higher PVC prices in the coming years. All this raises major complications for companies, such as plastic pipe producers, which, among others, use PVC as their main manufacturing material (PVC, but also alternative materials such as PP and PE, contributes about 80% of the cost of producing plastic pipes).

Graph c

With all this in mind, one would wonder what the solution is. The answer is simple, but applying it is not. The solution is either to substitute PVC with another material or to minimize its use in production. So, to date, does the world have a more sustainable alternative to PVC for pipe production? Not yet, at least not one that would replace PVC in resistance, durability, or being less expensive, which brings us back to our main problem: the increasing prices of plastics. Then there's the second solution: minimizing PVC use without sacrificing performance. Reducing weight and reducing virgin materials while maintaining performance.

Rollepaal, the leader in pipe extrusion technology, comes in to offer two material-saving solutions:

1. PVC-O technology:

With patented Rollepaal PVC-O technology, we help pipe producers deliver the highest-quality pipe at the lowest possible production cost. Rollepaal PVC-O reduces material consumption by up to 64% compared to UPVC pressure pipe. Doesn't it sound impossible? To build trust and control quality, every Rollepaal PVC-O line is equipped with wall-thickness scanning technology that works with gravimetric material feeding to automatically reduce overweight without operator intervention. In short, together with low scrap rates and continuous production, the result is the lowest possible cost per meter. Find out more about Rollepaal PVC-O technology.

2. Rollepaal Multilayer Die heads: 

The technology is based on the principle of symmetrical melt branching to feed the layers. Symmetrical melt feed ensures the best layer distribution because all flow lines have equal lengths. A few of the many benefits of Rollepaal Multilayer Die heads include excellent skin distribution to maximize material savings, the best performance on the market in skin-core ratio, adjustable outer- and inner-skin ratios, and thin-coating application for PVC and PO. In short, this technology helps pipe producers save up to 35% virgin material. Find out other benefits of Rollepaal Multilayer Die heads.

With these technologies, we at Rollepaal believe we are fulfilling our promise to contribute actively to our customers' success and the environment by offering sustainable, cost-saving solutions.

Resources:

- Polyvinyl chloride futures chart - investing.com. (n.d.). Retrieved Feb 15, 2022 & Jan 11, 2023 from https://www.investing.com/commodities/pvc-com-futures

- PVC Prices Globally 2022 - Statista, (n.d). Retrieved Jan 11, 2023, from https://www.statista.com/statistics/1171131/price-polyvinyl-chloride-forecast-globally/

- Pvc stock forecast: up to 12125.50 vnd! - walletinvestor.com. (n.d.). Retrieved Feb 15, 2022, and Jan 11, 2023, from https://walletinvestor.com/hose-stock-forecast/pvc-stock-prediction