Category Archives: new resins prices

Breaking the Mold

Posted on November 2, 2011 by

[This article is also posted on Plastics Today.] In our previous episode, we learned that the CFO of Poly Wise challenged ‘old dog’ Ralph the Purchasing Manager to convert their polypropylene supply from an index price – which exposes Poly … Continue reading →

Posted in competitors, crude oil, customers, hedging instruments, margin risk, new resins prices, plastics manufacturers, polypropylene, profit margin

An Old Dog Learns New Tricks

Posted on October 26, 2011 by

[This article is also posted on Plastics Today.] In our last episode, we learned that after deciding to search for a supplier to provide polypropylene at the new resins pricing, Poly Wise switched from defense to offense on profits, telling … Continue reading →

Posted in competitors, crude oil, customers, employees, Exxon, Futures, new resins prices, polypropylene, profit margin

Profit Sharing for Profit Making

Posted on October 20, 2011 by

[This article is also posted on Plastics Today.] Last time, we learned that Poly Wise is attempting to structure a deal with a polypropylene supplier utilizing the new resins pricing paradigm. They offer to buy polypropylene on a long-term contract … Continue reading →

Posted in competitors, crude oil, employees, Energy prices, Futures, jobs, manufacturing, new resins prices, plastics manufacturers, profit margin, Strategies | Tagged

New Pricing Paradigm for Higher Margins and a Secure Future

Posted on October 4, 2011 by

[This article is also posted on Plastics Today.] A recent study (Plastics Today, 27-June-11) indicates plastics manufacturers are happy with an 8% return on sales (gross profit margin) because the historical average is 5% to 7%. If you’re happy with … Continue reading →

Posted in competitors, crude oil, customers, Futures, hedging, jobs, manufacturing, margin risk, new resins prices, plastics manufacturers, profit margin, Strategies

Resins Prices: A New Paradigm

Posted on September 27, 2011 by

[This article is also posted on Plastics Today.] Earlier, I recommended CME replace its moribund resins futures contracts with spread contracts against crude oil futures. Crude oil prices drive resins prices (see discussion on my website, and here and here in Price … Continue reading →

Posted in commodity prices, crude oil, Exxon, Futures, hedging instruments, new resins prices, plastics manufacturers, profit margin