Likely Impact of McDonald's Phase Out of PS Hot Beverage Cups
26. September 2013
How will the recent decision by McDonald’s to use paper cups after a successful large-scale test and eliminate millions of polystyrene hot beverage cups in the U.S. affect PS prices?
Mark Kallman, director of client services for PS, PVC and engineering resins at purchasing consultants Resin Technology, Inc. (resinpros.com) ventures that this move will definitely impact PS demand in the long run, which could result in lower prices for processors. The big question is which other companies might follow this action? In addition, there are more municipalities and states pushing for bans of PS packaging.
Says Kallman, “Supply-demand balance is the key factor driving pricing today. A reduction in demand will eventually put downward price pressure on the market unless there is a corresponding drop in capacity or capacity utilization.”