Minimize exposure to risk and margin loss by understanding market inflection points.
Changing crude oil prices have added complexity to the investment decisions of petrochemical firms. Depending on regional demand, available supply, and business drivers, chemical companies must determine which capacity investments make good financial sense. Buyers anticipating lower prices following the decline in crude oil have paused their procurement decisions, this shift in turn has slowed demand growth, causing short-term oversupply and resulting price declines, although responses have varied by region, market, feedstock, level of integration and value chain.
What S&P Global can do for you:
- Develop sourcing strategies and recommendations for new raw material suppliers that support business growth
- Identify and capitalize on buying opportunities for new raw material supply contracts
- Re-negotiate and manage efficient supply contracts that reduce costs, mitigate risks and expand margins