Packagers can take advantage of these hedging tools without affecting current supplier relationships. Such futures contracts are also available for converters or blow-molders. The contracts are based on a published price index that tracks floating market prices.
Resin price protection
At least two firms are now offering hedging services for packagers that buy or manufacture large volumes of rigid or flexible plastic packaging. Such risk management services allow packagers to purchase price-protection contracts for plastic resins, mitigating the effects of resin price fluctuations over a fixed period of time.
Feb 28, 1998
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