As seen in the Tried & True Spring 2026 issue
Global events often have a way of reaching directly into our industry. The ongoing instability in the Middle East—particularly involving Iran—continues to create uncertainty across one of the world’s most critical regions for energy and petrochemical production. Because the materials used to manufacture HDPE and HDPP pipe are derived from oil and natural gas, disruption in that region quickly impacts the cost and availability of the resin that goes into every foot of pipe we produce.
Energy prices have already reacted. Oil prices have climbed above $100 per barrel, and natural gas prices have risen as well, though not as drastically. When energy costs increase, the cost of producing plastic resin rises. Polyethylene, the primary material used to manufacture HDPE drainage pipe, is seeing some of the fastest movement. Suppliers have implemented polyethylene price increases of approximately $0.30 per pound in April, with an additional $0.20 per pound increase announced for May, and polypropylene is following a similar upward trend.
At the same time, global supply chains are tightening. Even as key shipping routes reopen, vessel rerouting, higher insurance costs and shifting trade patterns are increasing freight costs and slowing the movement of materials. Many regions that rely on Middle Eastern supply are turning to North America for stability, pulling more resin into export markets and tightening domestic availability.
Because of these factors, the resin market has shifted quickly. Producers are limiting spot availability and pricing new sales based on the cost to replace material today rather than what it cost last week. In simple terms, the market has moved from a buyer-driven environment to a seller-controlled one.
Resin is the largest cost component in Fratco’s HDPE and HDPP pipe
products, so shifts like this eventually impact pipe pricing and availability across the industry.
While moments like this can create uncertainty, they are not new to our industry. We have worked through energy spikes, supply shortages and freight disruptions before, adapting each time to continue delivering the drainage solutions our customers rely on.
We are watching the market closely and working with our suppliers to manage these changes as responsibly as possible. As we have through every industry shift before, we will continue working alongside our customers to keep projects moving and water flowing.
DISCLAIMER: The global resin market situation continues to evolve rapidly. The information provided above reflects the best available insights at the time of publishing but may not represent the most current developments.
