Global Drums

Pricing Trends

Pricing is a critical competitive factor for drums due to intense industry competition, the wide availability of substitute products, and the undifferentiated nature of many types of bulk packaging. A range of factors impact prices for drums, including:

• raw material and labor costs

• energy and transportation expenses

• material supply levels (product availability)

• manufacturing capacity levels

• international trade activity

• the availability of alternative shipping products including other types of packaging, as well as tanker trucks and other containers

• industry competitiveness within specific applications

Raw material prices tend to have the greatest influence on the costs of drums. Steel, plastic resin (particularly polyethylene), and paperboard costs are the main raw materials used to make drums.

While raw materials pricing fluctuations are important, drum prices may not always directly reflect them, as producers often absorb raw material price increases, especially minor or temporary price hikes, to remain competitive. The ability to raise prices can also be limited under annual or multi-year contracts in which the price is fixed for a given period, an approach often used by large-volume purchasers.

Competitive Products

• The chemical and pharmaceuticals market utilizes many liquid ingredients, and these can be transported in tanker trucks or metal tanks instead of in drums. Food and beverage production and the agricultural goods markets also utilize large amounts of liquid ingredients. While tanker trucks can contain up to six separate compartments, it is possible to transport a larger number of different liquids using bulk packaging such as drums.
• Dry ingredients can be shipped in cans, bottles, jars, and other rigid packaging. However, these containers can be more costly than bulk packaging (such as drums) and generate more waste.