Day 3 - Wednesday 15 October 2008

• Upstream technologies – the different routes to making olefins
• The impact on economics and technology and feedstock choices
• How crude oil and other fundamentals influence pricing down the value chain

• History of development and end-use applications
• Process technology and the role of catalysts
• Strengths, weaknesses and alternative polymers
 

• History of development and end-use applications
• Process technology and the role of catalysts
• Plastics processing

• How markets are assessed: price reporting versus other mechanisms
• Who sets the price: the influence of producers, buyers and traders
• The roles of contract versus spot & regional variations in pricing mechanisms
• A 12-month view on price direction with demand and supply predictions

• Industry structure: the major players and their strategies
• The shift in regional influences and the impact on trade flows
• Key threats and opportunities over the next 5-10 years

• The Middle East’s growing dominance
• China’s next wave and the impact on importers
• India – too much too soon and the effect on balances
• The US and Europe: consolidation rather growth
• Demand and supply predictions

The exercise aims to get participants to put their knowledge of contract and spot polyolefin pricing mechanisms and factors influencing pricing into practice.

The group will be divided into teams of sellers and buyers. Sellers will be assigned a fixed quantity of a product that has to be committed for sale on spot or contract or a combination of the two. A contract pricing mechanism will have to be developed. The two sides will have to arrive at contract/spot prices for two consecutive months.

The group will be provided with a six-month price history of the product, its feedstock and related products. They will also be given relevant background to the product that will help in decision making. During the exercise, the group will be provided with 'live' news that could affect pricing.