NEGOTIATOR’S TAKE:  North American producers have a huge cost advantage for plastic products made from Ethylene.  You might want to re-think sourcing from China.

Now that the US has surpassed Saudi Arabia as the top crude oil and natural gas producer, it can produce cheaper plastic and bring better economic prospects to the nation.  How so?  Well, it’s ethane that’s the key ingredient:

 

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Ethane can be derived from both natural gas and crude oil.  From ethane you get ethylene, which is the basic building block of many plastics….read the rest of this ProPurchaser sourced article, here.

Source: Spend Matters

Article Author: RAJIV JOARDER of Mintec – View his profile at: LinkedIn

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