Insight

Polypropylene Hedging 101 – Risk management techniques are impacting today's propylene market

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This Insight explains how risk management companies are now regularly providing polypropylene (PP) fixed price swaps and physical PP railcar sales contracts to consumers. The impact of recent increases in PP fixed price swap activity has resulted in higher-than-expected Polymer Grade Propylene prices over the past two months. This is due to the fact that sellers of the fixed price PP swaps are also buying physical propylene and CME futures contracts as a hedge against their PP sales.

Table of contents

  • Polymer Grade Propylene Closing Price
  • EIA Propylene Stocks
  • Propylene Forward Curves for hedging activity in Q4 2011, April 2012 and January 2015
  • Propylene M1-M12 PCW Forward Curve Shape

Tables and charts

This report includes 6 images and tables including:

  • Polypropylene Hedging 101 – Risk management techniques are impacting today's propylene market: Image 1
  • Polypropylene Hedging 101 – Risk management techniques are impacting today's propylene market: Image 2
  • Polypropylene Hedging 101 – Risk management techniques are impacting today's propylene market: Table 1
  • Polypropylene Hedging 101 – Risk management techniques are impacting today's propylene market: Image 3
  • Polypropylene Hedging 101 – Risk management techniques are impacting today's propylene market: Image 4
  • Polypropylene Hedging 101 – Risk management techniques are impacting today's propylene market: Table 2