Polyethylene

The price of oil “has nothing to do with the cost to make a pellet in North America.” But he added that oil prices “have everything to do with the price of the [PE] pellet globally.” Mike Burns – Plastic News, January 9, 2014. 

Polyethylene markets finally broke free from several years of supplier control. Preparing for change is one of RTi’s many strategic business platforms. Following key market drivers to make key decisions that contribute to the profitability of the client. However, RTi’s prime focus is implementing long term and short strategic plans to identify and achieve RTi’s best known lowest resin price benchmark in your market.

Achieving the best price is only the beginning. With major expansions, new global drivers and no resin price transparency, it is crucial for your business to have the answers to these two questions:

  1. Were you first to achieve a price decrease?
  2. Did you capture all of the decrease?

If your price moves with the market indices you are not capturing all of the decreases. Throughout the year there are times when the buyer can improve versus the market – up or down. This mistake is one of the reasons RTi has been saving clients millions of dollars for over 17 years.

Current market changes  volatile oil prices and strong export prices means you need to be in position to stay ahead of the market. Where will the bottom be? How soon will it happen? Why will it happen?