Monthly Archives: January 2012

Establishing a Resins Hedge Account

Posted on January 18, 2012 by

[This article is also posted on Plastics Today.] In the roadmap for managing resins prices, I explained that risk management is a process whose purpose is to help achieve strategic and economic objectives (e.g. price certainty, increased utilization rates, hoped-for profit … Continue reading →

Posted in competitors, crude oil, Energy prices, hedging, hedging instruments, plastics manufacturers, profit margin, risk management, rules, Strategies

A Good Time to Eliminate Natural Gas Price Risk

Posted on January 4, 2012 by

[This article is also posted on Plastics Today.] Long-term energy price and supply projections are always suspect. But for most manufacturers exposed to energy and resins price risk, it’s worth asking, “How low can natural gas prices go?” Consider these … Continue reading →

Posted in Energy prices, ethane, ethylene, natural gas, plastics manufacturers, polyethylene, risk management, rules