Chapter 16. Feedstock Price Volatility and How to Deal with It

  1. Dr. Florian Budde Director3,
  2. Prof. Dr. Utz-Hellmuth Felcht Chairman of the Board of Management (CEO)4 and
  3. Dr. Heiner Frankemölle Director5
  1. Scott Andre1 and
  2. Sunil Sanghvi2

Published Online: 7 FEB 2008

DOI: 10.1002/9783527612246.ch16

Value Creation: Strategies for the Chemical Industry, Second Edition

Value Creation: Strategies for the Chemical Industry, Second Edition

How to Cite

Andre, S. and Sanghvi, S. (2005) Feedstock Price Volatility and How to Deal with It, in Value Creation: Strategies for the Chemical Industry, Second Edition (eds F. Budde, U.-H. Felcht and H. Frankemölle), Wiley-VCH Verlag GmbH & Co. KGaA, Weinheim, Germany. doi: 10.1002/9783527612246.ch16

Editor Information

  1. 3

    McKinsey & Company, Inc., Taunustor 2, 60311 Frankfurt/M., Germany

  2. 4

    Degussa AG, Bennigsenplatz 1, 40474 Düsseldorf, Germany

  3. 5

    McKinsey & Company, Inc., Magnusstrasse 11, 50672 Cologne, Germany

Author Information

  1. 1

    McKinsey & Company, Inc., Two Houston Center, 909 Fannin, Suite 3500, Houston TX 77010, United States

  2. 2

    McKinsey & Company, Inc., 21 South Clark Street, Suite 2900, Chicago IL 60603-2900, USA

Publication History

  1. Published Online: 7 FEB 2008
  2. Published Print: 25 NOV 2005

ISBN Information

Print ISBN: 9783527312665

Online ISBN: 9783527612246

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Keywords:

  • chemical industry;
  • feedstock price volatility;
  • challenge of feedstock volatility

Summary

This chapter contains sections titled:

  • What is Driving Feedstock Price Increases and Volatility?

    • Crude Oil Surprises

    • Natural Gas Price Contrasts

    • Petrochemicals – Layers of Volatility

  • A Brave New World of Feedstock

    • Step on the Gas

    • Coal Gets a New Look

    • Bio-based Feedstock

  • Meeting the Challenge of Feedstock Volatility

    • Optimizing Contracts

    • Hedging – Financial and Physical

    • Fleximizing

    • Looking for Advantage

    • Restructuring Assets and Taking the Offensive

  • Conclusion

  • Summary