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Oxea moves to monthly pricing
03 Jul 2008 -
The global chemical company Oxea has moved to regular monthly pricing adjustments across its entire product portfolio sold in North and South America. This change is necessitated by increasingly volatile raw material prices, while demand remains strong and olefin supplies are tight.
"Oxea buys raw materials that are priced on a daily basis. It is no longer tenable to offer quarterly pricing to non-contract customers", said Miguel Mantas, member of the Executive Board of Oxea. "The move to monthly pricing highlights our effort to make sure that no customers are surprised by the need to pass through higher costs. Oxea intends to achieve clarity and balance in a volatile and unpredictable feedstock environment", Mantas continued.
Where contracts are in place, price adjustments will occur through specific mechanisms embedded in the agreements. For non-contract customers, Oxea will move to monthly pricing and will announce any increases prior to the beginning of the implementation month, doing its best to give approximately fifteen days notice.
To improve product availability for all customers, Oxea may limit sales of its products based on customer's average monthly purchases, or their contractual commitments. This sales control level may be necessitated by current olefin shortages and announced supplier allocation levels as low as 85 percent.
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