Plastics spot-trading platform and market intelligence firm, The Plastics Exchange, has signed off on a loan of up to $25 million from Q Lotus Holdings, with funding expected to close within 30 to 90 days. Brad Friedman, assistant VP of Q Lotus, told PlasticsToday that his firm views TPE as "innovators who emerged as the sole survivor of the plastics and petrochemical e-commerce efforts."
Founded by Michael Greenberg in the late '90s, TPE's primary business is as a spot-trading platform for commodity plastics, with the exchange acting as a go-between between buyers and sellers of resin, pairing off bids and offers anonymously, and occasionally buying and selling resin itself. In all these transactions, TPE records price movements, which it then supplies to the broader marketplace, working to create greater transparency within the resin market.
Greenberg is a former trading member of the Chicago Mercantile Exchange, actually its youngest ever, and within plastics, he saw a need for an open market to buy and sell resin. Today, TPE operates as a real-time marketplace for domestic and international commodity grade resin, including various grades (11 in total) of polyethylene, polypropylene, and polystyrene. The exchange has established trading relationships with a network of producers, distributors, traders, and brokers, which it says give it access to more than 100-million lb of warehoused resin and access, both direct and indirect, to most producers. ...