Understand The Pricing Strategy Of Polyester Yarn

Date:2017-08-03

Polyester Yarn pricing has unpredictable cost volatility. In addition to understanding the global dynamics that affect these fluctuations, it is also important to understand the pricing strategies used. There are two main pricing strategies on the market. One is "market" or "spot pricing". The other is the "index" pricing.

Market pricing or spot pricing, mainly for non-automotive and small batch of plans. Pricing is usually quarterly or a certain amount of container negotiation within a certain period of time. This is more volatile than index pricing. The above mentioned increase is spot price changes. Index pricing, mainly for large-scale car program, the number of months consistent. Identify an agreed formula and insert the MEG and PTA prices for the previous quarter into the equation. Quarterly adjustment based on raw material movement. Both strategies have their own strengths and weaknesses. Market pricing is more volatile in the short term, but over time these two strategies tend to be stable. This is really due to the risk tolerance and effort you need to invest in price negotiation and supply chain management.

The pace of the global economy is staggering. Buying cheap polyester yarns now is tempting, but the real value of the polyester industry is reliability (from the perspective of quality and delivery) as well as supply chain management. The goal of the United States is to make our customers work more easily. We manage this goal by managing all the uncertainties so that our customers can focus on their business. We disguise the uncertainties to avoid distracting our customers from implementing their corporate vision.

By working with the yarn industry leader, all of these uncertainties can be minimized to provide consistent quality, on-time delivery, local technical support and a variety of solutions. The complexity of our market is often underestimated. Your core market is sufficiently complex. Allowing expert partners to manage the complexity of the yarn business.