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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (11798)	9/14/2004 3:35:34 PM
From: TH	Respond to of 116555

mish, I will PM some information if this is not complete enough. We make a decorative type of product that is used to complete other products like, cars, tvs, cosmetics, money, credit cards, greeting cards, you name it. The range of offering is infinite and our products are sold over the globe. We use tons of PET, as well as a host of solvents and resins. I am expecting at least a 2% increase and would not be surprised to see 4-5% for certain markets. Your last question is very difficult to answer, as each of the major market responds to the increases differently. For example, a 5% increase in the automotive market is going to cause a decline in future programs. It may not impact current business, as the cost to validate an alternative supplier might be greater than the requested increase. The greeting card industry and general plastics industry might not suffer any loss, as the decorative costs are a very small percentage of the total cost. And, the few competitors in each segment are going to face the same impact from oil increases, so at some point they are going to have to suffer lower margins or pass that on to the customer, and ultimately the end user of the good. Good Trading TH