OverviewChemConnect Enhances its Plastics Capabilities
New polymer trading pit, managed auctions for wide-spec materials and packaging help companies streamline processes and hedge risk across the entire product chain
HOUSTON, TX (May 19, 2003) - ChemConnect, Inc. a leader in helping customers optimize their purchasing and sales processes, has become a major destination for buyers, sellers and traders within the plastics industry as a result of a its enhanced plastics capabilities and increased industry adoption. ChemConnect customers are driving value and cutting costs using its Marketplace, including the Commodity Markets Platform and managed and self-service auctions.
ChemConnect significantly increased its commitment to polymer buyers, sellers and traders by facilitating transactions for various grades of polyethylene, polypropylene and polystyrene as well as financial swaps and cross-commodity spreads across the polymer product chain, from ethane and propane, for example, through to finished product. Using ChemConnect, customers can take advantage of product liquidity and hedge risk across the spectrum.
In addition to facilitating both physical and financial trades, ChemConnect's Marketplace has become a preferred platform for negotiating the sale of a variety of engineering plastics and wide-spec and non-prime polymers. Forward-or sell-side-auctions, managed in partnership with ChemConnect's service team, have become a widely used method for sellers to drive higher business value from what has traditionally been viewed as non-strategic product. Buyers benefit from predictable access to product on an ongoing basis.
To date, sales of more than 700 lots representing in excess of 100 million pounds of resin have been negotiated through 75 managed auctions conducted weekly. The notional value of global auctions for the procurement of plastic additives and colorants totaled $200 million, and more than $70 million in packaging related auctions have been completed, with up to ten locations per auction containing hundreds of individual line-items.
"The plastics industry is a prime example of how companies are using a variety of services available from ChemConnect to drive value," said John K. Robinson, ChemConnect CEO. "Whether discovering new markets, streamlining the trade of high volume commodities or using our negotiation platform to manage the buying and selling of finished product, ChemConnect has become a critical part of effectively managing these processes for plastics and packaging leaders."
Process efficiencies achieved through regularly scheduled managed auctions allow sellers to streamline sales processes related to these materials and focus on higher yield activities. Inventory also moves much faster, resulting in savings on the commercial side of the business, including rail fleet utilization. Sellers have also reported that the transparency achieved through ChemConnect provides them the assurance that they are securing market prices through dynamic negotiations, which often results in price uplift. However, transaction cost-savings alone provide significant return on investment.
About ChemConnect
ChemConnect is a leader in helping customers optimize their purchasing and sales processes for chemicals, plastics, and related products through a unique combination of market information, industry expertise, e-commerce solutions, and an active network of trading partners. More than 7,500 Member companies in multiple industries around the world can use ChemConnect's highly efficient tools and services to streamline transactions and lower costs. Visit www.chemconnect.com for more information.
Note to Editors: ChemConnect is a registered trademark of ChemConnect, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.