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CMAI/IHS Index for Resin Pricing

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allplastics
Posts: 13
Joined: Tue Feb 27, 2018 3:24 pm

CMAI/IHS Index for Resin Pricing

Post by allplastics » Tue Jun 26, 2018 10:16 am

I just wanted to find out if anyone uses the CMAI/IHS Index for managing their resin pricing? If so, what do you feel are the Pro & Cons with this process?

We have typically just worked off the "announced price change letters," from the manufacturers and pass along any increases if they end up going through at the end of the month.

Thank You.
Brian

Troyonix29
Posts: 29
Joined: Mon Feb 26, 2018 10:09 am

Re: CMAI/IHS Index for Resin Pricing

Post by Troyonix29 » Tue Jun 26, 2018 11:14 am

Brain, I just reached out to Brian Olesen who is the President of Centro to see if he can provide feedback.

He uses a very sophisticated resin purchasing process due to his volume , and I think he will have insight to this issue. If you want to contact him direct, use 319-625-3200 (mention MAPP and my name.)

Troy

briankolesen
Posts: 1
Joined: Tue Jun 26, 2018 11:37 am

Re: CMAI/IHS Index for Resin Pricing

Post by briankolesen » Tue Jun 26, 2018 11:54 am

Pro's:
only get "true" market moves
trailing index gives visibility & planning
averaging multiple months gives you a "smoothing" effect
allows to construct index with customers so takes time lag for price increases and friction out of relationship
negotiate annually with supplier on non market changes (based upon market conditions and changes in purchase quantity)

Con's:
not necessarily real time so significant changes in market conditions are not readily taken advantage of
cost of the the subscription to CDI or IHS
ture market conditions differ from posted index (possible but not likely)

Good luck, Brian
bolesen@centroinc.com

allplastics
Posts: 13
Joined: Tue Feb 27, 2018 3:24 pm

Re: CMAI/IHS Index for Resin Pricing

Post by allplastics » Wed Jun 27, 2018 9:22 am

Thank You! Appreciate the feedback.

Brian

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