August 25, 2015
With the volatility of oil and petroleum-based feedstocks, chemical companies are having to put much more thought into pricing, especially when you compare today’s oil price to levels from a year ago. This is fairly obvious for products that are more on the commodity end of the spectrum, but even specialty chemical producers are facing pressure to lower prices. To claim a seat at the table as a partner in creating value, chemical manufacturers need to better understand their customers’ processes, and their next best alternatives.
As I discussed in a recently-published article in IHS Chemical Week, margin volatility is the new normal. To survive and protect margins and profits, chemical manufacturers must take a tiered, data-driven approach that effectively manages profit despite fluctuating raw material costs. In the battle to retain customers and profitable margins in an ever-changing market, data-based decisions are your best bet.
Source: Bloomberg WTI