Volatility in the Resin Market

Volatility in the resin market isn’t unusual, but the situation in 2026 is different. Between March and April, resin prices spiked by more than 30% in some areas, and shortages are starting to show up across global supply chains. Because plastic is made from oil, and many portable restroom products need plastic resin, the entire industry is feeling the effects or bracing for impact.

Several plastic manufacturers raised concerns about resin pricing and market volatility during quarterly calls. For these reasons and others, we want to share more information with operators about the current and future impact.

How Oil Markets Affect Resin Pricing (and Equipment Costs)

Supply and demand influence the costs of global commodities like oil. Even historically regional markets like liquefied natural gas (LNG) are more connected worldwide, thanks to infrastructure expansions. When oil prices jump, the raw materials used to make plastic get more expensive almost immediately. It also costs more to run machinery, transport supplies, and keep the lights on.

The U.S. is the world’s largest polyethylene (PE) exporter, followed by Saudi Arabia. A big share of raw materials from U.S. producers is committed to buyers long before shortages occur. And when half of the global polyethylene and ethylene supply suddenly disappears, even increasing production isn’t enough to meet demand.

Resin is the biggest cost driver for manufacturers in the portable sanitation industry. It accounts for anywhere from 40% to 80% of the total cost of manufacturing portable restrooms, parts, and accessories. Some volatility and price swings can be absorbed, but ongoing instability and cost increases affect the entire sector.

What’s Driving the Current Spike

Over 40% of PE is sourced from the Middle East. Carriers move oil, gas, and PE through the Strait of Hormuz and the Suez Canal. In fact, about 84% of Middle Eastern polyethylene moves through the Strait. Rerouting vessels adds weeks to delivery times while increasing transportation costs by up to 25%. So, the effects of the Iran conflict are rippling through oil, gas, and resin industries, with some U.S. plants nearing sold-out conditions.

During the pandemic, demand tanked along with plastic prices. When people began buying again, supply couldn’t keep up, and resin costs spiked. What we’re seeing today isn’t a recovery after a slowdown. It’s a surge driven by energy markets and supply disruptions. And it’s affecting all types of plastic and chemicals.

Costs continue to rise across the board, even pushing up the prices of colorants and additives that help plastic hold up outdoors, like ultraviolet (UV) stabilizers. Industry veterans called April’s resin price increase “record-breaking” and the most intense they’ve ever seen. Unfortunately, leaders don’t see an end to price hikes or volatility in the resin market.

When Will Supply Chains Stabilize and Resin Costs Go Down?

Most experts say we will feel the impact from the Middle Eastern conflict for most of 2026 and possibly into 2027. They also estimate higher inflation rates, which will raise the cost of doing business.

Before the latest market shocks in late April, Dow Inc., a major plastic producer, said supply chains wouldn’t return to normal for up to 275 days. But the CEO recently said that conditions may be worse now. Any weather-related disruptions will drive prices even higher, as we’ve previously seen with Hurricane Ida.

Review Your Costs and Take Steps to Protect Margins

Look at your current inventory, expenses, and pricing structure to assess how rising costs affect your business. Be prepared for longer lead times and higher prices. Fuel, fleet maintenance, and chemicals could be more expensive, along with the cost of buying and repairing portable restrooms.

Looking to Take Your Portable Restroom Business to the NEXT LEVEL? Download our FREE Guide: “Your Guide to Operating A Portable Restroom Business.”

Thinking About GETTING INTO the Portable Restroom Industry? Download our FREE Guide: “Your Guide to Starting A Portable Restroom Business.”