Bi-Weekly Plastics Report - December 8th, 2023
Today 3:43 PM
Accelerate your business with global plastics solutions
Protect margins and build your business with access to expert plastics advisory services, price-risk mitigation strategies, market insights, fixed price contracts and more.
Enhance your procurement and protect profits
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 raw material markets – swings that can wreak havoc on budgets as they drive costs up and margins down.
The StoneX Plastics Team provides the market insights, access and expertise required to help businesses across multiple industry sectors understand the plastics markets better, make more informed purchasing decisions and protect their profit margins from price volatility.
We serve clients in:
Plastic fabrication
Food & beverage
Consumer / household products
Building &
construction
Automotive
Medical
Healthcare
Electronics &
appliances
Gain an edge with innovative solutions
Discover our three-pronged approach to help grow your plastics market knowledge, use market data to enable more effective procurement decisions, and access the commodity markets to mitigate price risk and protect profit margins.
Plastics market insights
Stay one step ahead with access to our bi-monthly Polyolefins Update, along with insights on monthly price movements, key market drivers, cash cost elements, supply chain dynamics, logistics, key industry events and more. Explore Market Intelligence.
Advisory services
We provide guidance to business professionals such as optimizing plastic resin and packaging purchases, developing a procurement strategy, sustainability and environmental analysis and our plastics industry 101 course.
Price risk mitigation
Our budgeting program offers quantitative analysis to plan plastics purchases and sales, physical product correlations to determine what products have underlying plastics risk, and physical and financial hedging accounting.
Why choose StoneX?
We earn our clients’ business and trust by offering expertise, extensive product coverage, global reach and access to markets that few other firms can.
Perhaps more important, our clients choose us because we put you first – every time. We focus on building personal relationships and a deep understanding of your trading strategies and objectives. By striving to use our entrepreneurial, flexible and agile approach, we provide real-time solutions to clients. The result is long-term relationships that add value beyond individual deals or transactions.
Perhaps more important, our clients choose us because we put you first – every time. We focus on building personal relationships and a deep understanding of your trading strategies and objectives. By striving to use our entrepreneurial, flexible and agile approach, we provide real-time solutions to clients. The result is long-term relationships that add value beyond individual deals or transactions.
Benefits of fixed contracts include:
- Greater cost certainty
- More accurate forecasting
- Improved budgeting
- Protection for profit margins
- More confidence to plan strategically
Fixed contracts: A superior approach to protecting 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.
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.
Explore our services
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Commodity procurementLearn how StoneX expertly manages all stages of the procurement process, from sourcing to settlement. -
OTC tradingTake advantage of StoneX's OTC trading expertise for more customized hedging options. -
Capital markets & advisoryPartner with StoneX Capital Markets for financing, funding and liquidity solutions to meet your growth targets. -
Derivatives marketNavigate the derivatives markets confidently with StoneX's vast expertise and comprehensive product suite.
Market Intelligence: Recent articles
Perspective: Morning Commentary for December 8
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Perspective: Morning Commentary for December 7
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Perspective: Morning Commentary for December 6
Wednesday 1:36 PM
FAQs
What are commodity plastics?
Commodity plastics are derivatives of crude oil & natural gas and are produced in high volumes for numerous applications. In contrast, engineering plastics are typically used for high performance end-uses requiring exceptional strength and/or heat resistance. Commodity plastics tend to be less expensive and are used for everyday or limited-use consumer goods, food & beverage packaging, disposable items, building & construction, and healthcare items.
What are types of commodity plastics?
Types of commodity plastics include polypropylene (PP), polyethylene (PE), polystyrene (PS), polyvinyl chloride (PVC), and polyethylene terephthalate (PET) among others.
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The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc. Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.
Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. StoneX Markets, LLC (“SXM”), a subsidiary of StoneX Group Inc., is a member of the National Futures Association and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. Any recipient of this material who wishes to express an interest in trading with SXM must first prequalify as an ECP, independently determine that derivatives are suitable for them and be accepted as a customer of SXM. Trading over-the-counter (“OTC”) products or “swaps” involves substantial risk of loss. This is not an offer to buy or sell any derivative. This material does not constitute investment research and does not take into account the particular investment objectives, financial situations, or needs of individual clients or recipients of this material. You are directed to seek independent investment and tax advice in connection with derivatives trading.