EPCA '04: Feedstock volatility highlights supply chain focus

26 September 2004 09:27  [Source: ICIS news]

MONTE CARLO, Monaco (CNI)--The importance of supply chain management becomes even more crucial as feedstock volatility forces chemical producers to switch to shorter-term contracts, a major producer said here Sunday on the sidelines of the European Petrochemical Association (EPCA) annual conference.

He said the move towards increased spot deals and shorter term contracts meant that the whole supply chain had to be managed much more carefully, especially for products produced a long distance from end markets.

The general tight availability of shipping - due largely to continuing strong demand from Asia - made the balancing of shorter term supply contracts and the obligation to agree longer-term transport arrangements particularly difficult.

Feedstock volatility and in many cases record high prices for key raw materials also demand greater attention to plant economics, a focus made more problematic by the increasing move towards shorter term pricing of chemical products.

The EPCA conference runs through Tuesday (29 September).

CNI EPCA newsroom: Suite Naiades C, Grand Hotel; Tel. + 377-9315-1070/71

By: Neil Sinclair
+44 20 8652 3214

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