Pricing Trends

Over the long term, the trend in polyamide prices is firmly downwards. In the early 1990s for example, PA6 prices reached 3,700 per torme. Since then PA prices have moved in a cyclical manner, but the overall trend in prices is lower. 

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The value of imports rose to record levels in 1986 due to a twofold increase in the price of pepper, the second highest imported spice in volume, averaging about 4.00/kg. The effect on import values was pronounced, ie, approximately one-third higher, than 1985 imports. The upward price trend on black pepper continued in 1987 because the vines had been exhausted and the volume was lower. 

Historical hst prices for bulk quantities of selected methacrylates ate given in Table 7 (134). The historical price trends reflect the combined effects of improved manufacturing capabihty and the market price of cmde oil, the basic raw material to which these materials are ultimately tied. 

Accuracy of sales forecasting can also be increased by a carebil study of past sales records, price trends, etc. However, the uncertainty of an estimate increases the farther into the future that the estimate is projec ted. 

It may be possible for a company to negotiate the purchase of a material at a cost per unit that is significantly lower than the current pubhshed price. This is particularly true if large quantities are involved. Thus, estimates should be presented for both minimum and maximum costs. Price trends, availabihty, and quality are other factors that should be considered. A knowledge of price trends is particularly important for a product that a company may not manufacture for sever years. 

The concept of a soap-LSDA detergent represents a simple solution to the quest for less polluting highly efficient laundry detergents [47,48]. If present worldwide price trends for petrochemicals, phosphates, and other builders continue to rise, the use of tallow or other fats and oils, which are replenishable agricultural products or byproducts, should become economically more attractive. Since the USD A research team initiated research on soap-LSDA detergents, the a-sulfonated fatty acid esters (MES) have become commercially available in the United States, Europe, and Japan. 

Price trends in polymers (Fig. 16.4) are more up and down depending on the economy for a given year. All of these major use polymers in the plastics industry are 30-50 C/lb to be competitive. LLDPE can be made more economically than LDPE. It is usually about 4 C/lb lower in price. 

U.S. price trends show that cotton and polyester are the most popular for good reason they are the cheapest. Nylon and acrylic have had price increases over the last few years, part of which may be due to improvements and safeguards needed to manufacture their precursors acrylonitrile, butadiene, and benzene, which are on carcinogen lists. 

Pick three products of the CPI from a different SIC. Do a literature research on the market of each product. Who are the major buyers How does the product perform for the customers What are the fortunes of the customers in recent years What is the current price and price trend Where are these products in the life cycle Are there any new opportunities or threats to the prosperity of these three chemicals (Suggestion start with the Kirk-Othmer Encyclopedia of Chemical Technology, the Ullmann Encyclopedia, and the Chemical Market Reporter.)... 

With the current energy demands increasing, the unit costs of all utilities are increasing. Any prices quoted need to be reviewed periodically to determine their effect on plant operations. A company utility supervisor is a good source of future price trends. Unfortunately, there are no shortcuts for estimating and projecting utility prices. Utilities are the third largest expense item in the manufacture of a product, behind raw materials and labor. 

A relatively simple, meaningful way to examine price trends is to estimate models of the form ... 

During the 1980 s the melamine list price in the United States was very steady at 0.50 to 0.52/lb. In 1989 and 1990 the price rose to 0.58 to 0.62/lb, but then it declined to the low 0.40 s by 1994. From 1995 to 1999 the price began to rise again and reached 0.70/lb. Import prices showed similar trends during the 1980 s and reached a value of 0.58/lb in 1990. Since that time import prices trended downward to less than 0.40/lb by 1995 and only recovered to about 0.50/lb by 1998114. 

Fig. 2.3. Northwest Europe sulfuric acid price trends, 1980-2003. Actual prices are negotiated between buyer and seller. Data sources ...

Recycling of old asphalt pavements is an energy-intensive activity which is being stimulated by two factors—the decreasing availability of total absence of quality aggregates in a number of regions around the country and the current price trends and projected demands for asphalt cement. These factors were discussed in the beginning of this chapter. 

WEEK FROM JAN 01 1988 Figure 5.1 Olefin and naphtha price trends... 

However, the aromatics, in particular benzene, are highly sought after as petrochemical intermediates and gasoline additives. Recent price trends are illustrated in Figure 5.4. 

Fig. 16.7 Comparison of long term styrene price trend with styrene reinvestment economics, 1980-99...

A monthly economic journal (88) contains concise statistical information on economic conditions in Switzerland, with short surveys of different aspects of Swiss economy (labor market, wage trends, credit conditions, and price trends). 

Any other factors indicative of importance or power Price data Price trends... 

A price-trend history of the United States rayon industry can be found in Markham s recent book, Competition in the Rayon Industry" 8. ... 

Historically, the price trends of all plastics have been downward—a tribute to the industry s technological and market development advances. However, the plastics industry cannot long survive if it cannot sell its products at a fair price for a reasonable profit. If it is to continue its advancement in the 70 s at the 13-15% growth rate and offer new and improved products to its customers (it is estimated that in the late 70 s, perhaps 50% of the products to be sold are unknown today or not available in large quantities), a proper return on investment must be maintained. 

Since most of the petrochemicals from the petrochemical refinery scheme have values in the U.S. which are so intimately involved with premium fuel values and have price trends which are buffered by fuel refinery requirements and economics, the petrochemical refinery must be considered in an oil industry context. 

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