Perspective: Morning Commentary for April 26
Yesterday 2:30 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.
Explore our services
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Consulting and advisoryWe work hand-in-hand with our plastics clients to help manage price volatility, protect margins and boost their bottom line. -
Plastics procurementLearn how StoneX expertly manages all stages of the plastics procurement process, from sourcing to settlement. -
OTC tradingWe offer customized OTC products to help plastics businesses receive tangible benefits over trading on the exchanges. -
Clearing and executionAs a leading global non-bank FCM, our comprehensive suite futures clearing & execution services deliver broad exchange access and transparency to our plastics clients.
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.
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.
Our clients
We help companies protect their profit margins across the entire plastics supply chain – from fabricators and importers/exporters to consumer goods and food and beverage companies.
Plastic fabrication
Plastics can be susceptible to significant price swings that can wreak havoc on budgets as they drive costs up and margins down. StoneX helps plastic fabricators manage volatility, protect margins and boost their bottom line.
Food & beverage
We utilize our extensive plastics expertise to help food and beverage companies grow market knowledge, use market data for more effective procurement decisions, and mitigate price risk to protect margins.
Consumer/household products
We assist businesses in the consumer and household products space OTC solutions that offer our clients customized terms aligned with your unique hedging requirements.
Additional clients
- Building & construction
- Automotive
- Medical
- Healthcare
- Electronics & appliances
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.
Plastics Market Intelligence
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FAQ
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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To learn more about how our customized financial solutions can help you stay one step ahead in the global markets, contact our team today.
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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.
StoneX Financial Pte. Ltd. ("SFP") (Co. Reg. No 201130598R) is regulated by Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS100476) for Dealing in Securities, Collective Investment Schemes, Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading, is an Exempt Financial Advisor under the Financial Advisors Act 2001, and is a Major Payments Institution (PS20200625) under the Payment Services Act 2019 for Cross Border Money Transfers.
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