Plastic Services

Market intel, expertise and price risk management to enhance procurement and protect profits.
Polyethylene | Polypropylene

Few materials have grown more central to most manufacturing and wholesaling/retailing processes – and their costs – than plastics. Yet, traditional resin and packaging purchases can be susceptible to significant price swings in the plastics markets – swings that can wreak havoc on budgets as they drive costs up and margins down.

The StoneX Plastics Team can provide the market insights, access and expertise required to help businesses across multiple industry sectors understand the plastics markets better, make more informed purchasing decisions based on that knowledge, and protect their profit margins from price volatility. 

 

Plastics Advisory Services

Data > Knowledge > Better results

StoneX takes a hands-on, holistic approach to learning your business and understanding your plastics needs. Based on that understanding, we pursue a three-pronged approach to help you grow your market knowledge, use market data to enable more effective procurement decisions, and access the commodity markets to mitigate price risk and protect profit margins.

HDPE Blow Molding Copolymer	Polypropylene Homopolymer
Commodity: Polyethylene Index: IHS & CDI Units: Pounds Price Sources: Global Plastics & Polymers Report Month Ending Price Index published by IHS Markit Inc. Chemical Data Monthly Petrochemical & Plastics Report Currency: USD	Commodity: Polypropylene Index: IHS & CDI Units: Pounds Price Sources: Global Plastics & Polymers Report Month Ending Price Index published by IHS Markit Inc. Chemical Data Monthly Petrochemical & Plastics Report Currency: USD

Price Risk Mitigation

Budgeting Program Historical pricing analysis – quantitative analysis to plan plastics purchases and sales Physical product correlations – what physical products have underlying plastics risk Physical and financial hedging accounting – reports regarding both sides of transactions

Risk Management > Fixed Contracts > Protection for Profit Margins

Most end-users procure their plastics through spot purchasing and floating contracts. However, neither of these strategies provide much protection from significant swings in plastics prices.

As an increasingly popular alternative, fixed contracts help mitigate the risks posed by volatile prices by using the commodity markets to “lock in” a fixed price for critical sales for an extended period. By minimizing the price volatility of a major cost input, fixed contracts can enable more accurate forecasting & budgeting on your plastics spend and more “predictable” profit margins month to month.

Benefits of Fixed Contracts

Greater cost certainty • More accurate forecasting • Improved budgeting • Protection for profit margins • More confidence to plan strategically

Available Contracts

HDPE Blow Molding Copolymer	Polypropylene Homopolymer
Commodity: Polyethylene	Commodity: Polypropylene
Index: IHS & CDI	Index: IHS & CDI
Units: Pounds	Units: Pounds
Price Sources: Global Plastics & Polymers Report Month Ending Price Index published by IHS Markit Inc. Chemical Data Monthly Petrochemical Plastics Report	Price Sources: Global Plastics & Polymers Report Month Ending Price Index published by IHS Markit Inc. Chemical Data Monthly Petrochemical & Plastics Report
Currency: USD	Currency: USD

Contact Us

To learn more about how the Plastics Team within StoneX Financial Inc. – FCM Division can help your business upgrade your procurement function and protect profit margins from price volatility, please reach out to one of our team members today.

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