Will Commodity Future Prices Make Any Difference?
Futures trading activities in the three raw materials that provide the most important components in tape manufacturing have all seen significant downturns in the last week.
Cotton pricing (cotton is the primary backing material for cloth tapes), Oil (major component of adhesives and vinyl tape backing), and rubber (primary adhesive component in tapes using natural rubber adhesive like duct tape) have all continued to trend down.
Major tape manufacturers who have been passing price increases along to distributors as often as once a quarter over the last year should now have a chance to stabilize their markets.
Cotton pricing is particularly good news, as cotton is the primary price driver in the cost of gafffers tape, the most important product in our tape offerings. The future price of cotton began to fall in early April and if American farmers have a good growing season there should be an abundance of this product by the end of the fall.
If you are interested in continuing to follow these developments, check back here often.
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