Profitable Plastics: Resin price caps are here...

11/15/2012

...along with the other right tools for you to control resins costs and secure profit margins

Last time, I discussed resins price caps - insurance against resin prices moving higher than an acceptable future level. Price caps would enable processors to control resins costs effectively and economically and give them valuable time to make better purchase decisions and, consequently, save up to 5 ¢/lb in average resins costs.

I had thought resins price caps were not available in the OTC or futures markets, so processors who wanted to cap their price risk needed to buy the next best thing: options in crude oil, which is highly - but not perfectly - correlated with resins. Happily, for processors in North America, I was wrong!...
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