Market
Plastic auctions – an idea ahead of the market.
The plastics industry is a highly specialised and relatively closed business environment. Trade is built primarily on trust, recurring deliveries, individually negotiated prices, and long-standing business relationships.In this context, introducing online auctions is not as straightforward as it might seem.
Not every material is suitable for an auction
Many companies have worked with the same suppliers for years, valuing predictability, consistent quality, and established commercial terms. Public price bidding can raise concerns regarding the confidentiality of commercial information, relationships with existing clients, and pressure to lower margins.
Therefore, it is unlikely that auctions will fully replace the traditional sales model for all plastics. In many cases, direct negotiations will likely remain the dominant approach. Categories such as regranulates often face issues with consistency, while compounds are created for specific projects; even if they share the same name, they may not be suitable for other applications, as they require prior testing and approval by the specific company involved.
Where can auctions work well?
Auctions show the greatest potential in the trading of prime plastics. These are products where availability, price, and the ability to quickly find a suitable supplier or buyer face the fewest obstacles.
An auction platform can help a seller reach beyond their circle of regular business partners and enable a buyer to find material that meets their needs. This does not necessarily require full price transparency; alternatives include closed auctions, confidential bids, and negotiations accessible only to verified market participants. However, this does not guarantee that the best offer on the market has been selected in a closed competitive process.
Evolution rather than revolution
Will plastics auctions become more popular in Poland?
It is possible, but their growth will depend on the specific characteristics of individual market segments and the tangible benefits for companies. The model we adopt at PoliVerif seems the most likely: digital trade complements and supports traditional relationships rather than competing with them. Technology is intended to facilitate the search for suppliers and their offers, but it cannot replace trust built over years. However, should market demand require it, we are prepared to offer auction-based categories as well.