Resin Procurement Glossary (A–Z)

A

A-Stage – The early stage of a thermoset resin’s curing process, where it is still fusible and soluble.

ABS (Acrylonitrile Butadiene Styrene) – Engineered resin with higher structural requirements and different feedstock sensitivities; impact-resistant, used in automotive, electronics, and consumer products.

Additives & Fillers – Compounds added to resins to enhance properties such as strength, UV resistance, or color; can affect both performance and cost.

Always-On Insights – Continuous, real-time market monitoring that updates as conditions change, helping buyers stay proactive.

B

Backwardation – Market condition where future resin prices are lower than current spot prices—critical for strategic timing. ResinSmart visualizes these curves for decision-making.

Benzene – Aromatic hydrocarbon feedstock used in the production of styrene and other polymers.

Benchmark Dependence – Heavy reliance on traditional resin indexes or published benchmarks for pricing decisions, which may lag real transactions.

Bio-Based Resins – Resins produced from renewable feedstocks, used increasingly for sustainability initiatives.

Brent Crude Oil – Global benchmark for crude oil pricing; movements influence feedstock costs and resin pricing.

Butadiene – Feedstock for ABS, synthetic rubbers, and other polymer products.

Buyer-Centric Market Data – Transaction-driven market intelligence focused on actual buyer prices rather than supplier-influenced data.

C

C-Stage – The fully cured stage of a thermoset resin where the material becomes insoluble and infusible.

Carrier Accessorial Charges – Additional shipping fees (e.g., lift-gate, fuel surcharges).

Circular Economy – Sustainability model promoting resin reuse, recycling, and reduced waste.

Container Shortages – Lack of shipping containers causing delays and increased resin transportation costs.

Contract Compliance – Ensuring purchased resin aligns with contract terms (price, delivery, quality).

Contract Lifecycle Management (CLM) – Managing the full lifespan of a resin contract—from drafting and signature to renewal or exit. ResinSmart integrates terms to trigger timely renegotiation.

Contract Price – Negotiated, stable pricing based on annual or multi-year agreements.

Contango – Market condition where future resin prices are higher than current spot prices, indicating potential oversupply.

Cost-Plus Pricing – Supplier pricing model where a fixed markup is added to resin cost. ResinSmart reverse-calculates implied resin cost and benchmarked margin for transparency.

Cross-Docking – Logistics method bypassing warehousing by directly routing resin from inbound trucks to outbound—used to reduce storage costs. ResinSmart supports this by accurately forecasting inventory flows.

Cross-Linking – Chemical bonding in thermoset resins forming a three-dimensional structure during curing.

Cumulative Draw/Gain – Total net change in resin inventory over time, used to assess market tightness or oversupply.

D

Data Validation – Cross-checking multiple data sources to confirm pricing accuracy and market trends.

Days of Inventory – Total resin inventory expressed in days of demand. High inventories (e.g., +1B lbs PE YoY) reduce pricing power—critical insight for procurement.

Demand, Production, Supply – Core factors driving resin market balance.

Demand Rate % – Rate at which resin inventory is consumed over a specific period, expressed as a percentage.

Density & Specific Gravity – Measures of resin mass relative to volume; important for weight-based pricing and product performance.

E

Economic Order Quantity (EOQ) – Optimal resin order size minimizing combined ordering and holding costs. ResinSmart blends price cycles, lead times, and capacity in EOQ modeling.

Escalation Clause – Contract provision allowing price adjustments based on feedstock or index movements. ResinSmart auto-flags triggers and validates market justification.

Ethylene – Key petrochemical feedstock used to produce polyethylene (PE).

F

Feedstock Cost (RMC) – Ethylene, propylene, and other raw material costs; primary drivers of resin pricing, analogous to ore cost in metals.

Force Majeure – Contract clause excusing performance during uncontrollable events like hurricanes or plant outages. ResinSmart alerts buyers in advance of high-risk periods for supply triggering.

Forward Buying – Purchasing resin ahead of forecasted needs to lock in favorable pricing or avoid logistics crunch. ResinSmart identifies timing windows via curve analysis and seasonality.

Freight Surcharges – Additional fees tied to energy and resin cycles; ResinSmart tracks these costs in logistics modules.

G

Geopolitical Tensions – Political conflicts, trade restrictions, or tariffs that influence resin pricing and trade flow.

H

HDPE (High-Density Polyethylene) – Rigid polyethylene used for containers, pipes, and durable packaging; generally higher cost and strength than LDPE or LLDPE.

High-Performance Resins – Specialized resins designed for extreme strength, heat resistance, or chemical resistance (e.g., PEEK, PSU).

I

Impact Copolymer (PP) – Polypropylene grade designed for impact resistance, used in automotive and industrial applications.

Imports and Exports – Movement of resin across borders; shifts in trade patterns impact regional pricing and supply.

In-Transit Inventory – Resin shipped but not yet received; ResinSmart dashboards track fluctuations to guide timing and negotiation posture.

Index-Based Pricing – Resin pricing tied to published benchmarks (e.g., OPIS, IHS); ResinSmart exposes true-market deviation vs lagging indexes.

Index Lag (Price Lag) – Delay between real market transactions and published index updates.

Inventory (Landed Basis) – Total resin inventory, including on-hand and in-transit stock, calculated with freight and other landed costs.

J

Just-in-Time (JIT) – Strategy to minimize storage by syncing resin deliveries with production needs.

L

LDPE (Low-Density Polyethylene) – Flexible polyethylene used in films, bags, and soft packaging; lower cost and strength than HDPE.

Lead Time – Full cycle from placing a resin purchase order to delivery, including internal approvals, production, shipping, customs, and unloading. Shorter lead times reduce carrying costs and improve agility.

Lead Time Variability – Fluctuations in delivery timelines; ResinSmart flags outliers to help procurement adjust safety stock and maintain continuity.

LLDPE (Linear Low-Density Polyethylene) – Combines flexibility and higher tensile strength than LDPE; used for films and stretch packaging.

M

Margin Compression Alerts – Notifications when resin price increases are not based on cost increases; ResinSmart flags these to protect procurement margins.

Margin Erosion – Loss of profitability caused by unjustified price hikes or poor negotiation leverage.

Melt Flow Index (MFI) – Measure of how easily melted resin flows; used to compare processing suitability between resin grades.

Minimum Order Quantity (MOQ) – Smallest resin volume a supplier will ship; ResinSmart benchmarking helps assess alignment with market value and risk.

N

Natural Gas Pricing – Price of natural gas, which affects ethane and propane feedstock costs for resin production.

Negotiation Confidence – Ability to push for better pricing or terms, strengthened by independent market data.

Non-Market Price Adjustments (NMPAs) – Periodic index corrections to reconcile published prices with actual market transactions.

Nylon (Polyamide 6, 66) – Engineering resin used in automotive, textiles, and industrial applications.

O

Opaque Pricing – Non-transparent pricing structures, often supplier-driven, making true market value hard to determine.

Operating Rate – Resin plant output as a percentage of production capacity.

P

PC (Polycarbonate) – Transparent, impact-resistant engineering resin used in automotive and electronics; sensitive to feedstock cost fluctuations.

PET (Polyester Terephthalate) – Clear, strong resin used in beverage bottles and packaging; recyclable.

PGP (Polymer Grade Propylene) – High-purity propylene feedstock used to produce polypropylene.

PIR (Post-Industrial Resin) – Recycled resin recovered from industrial production waste streams.

Polyethylene (PE) – High-volume resin family:

• HDPE – Rigid, higher cost, used for durable containers.
  
  
• LDPE – Soft, lower cost, used in films and bags.
  
  
• LLDPE – Flexible yet strong, used in packaging films; blends cost and strength considerations.
  
  

Polypropylene (PP) – Commodity resin used in packaging and automotive; feedstock = propylene. Types include:

• Homopolymer – Rigid, high strength.
  
  
• Impact Copolymer – Impact-resistant for automotive/industrial use.
  
  
• Random Clarified Copolymer – Transparent, used in food and medical packaging.
  
  

Polystyrene (PS) – Brittle, low-cost resin used in packaging, insulation, and disposables.

Polyvinyl Chloride (PVC) – Used in both rigid applications (pipes) and flexible products (cables, flooring).

Port Delays – Shipping congestion slowing resin imports and exports.

Post-Consumer Resin (PCR) – Recycled resin from used consumer products.

Predictive Analytics – Data modeling to forecast resin pricing and supply risks.

Predictive Market Insights – Forward-looking signals helping buyers anticipate market shifts and time purchases.

Price Benchmarks – Published references used to gauge competitive resin pricing.

Price Volatility – Frequent or sharp changes in resin pricing due to supply, demand, or external shocks.

Propane – Natural gas liquid processed into propylene and other feedstocks for resins.

Purchase Order (PO) – Legal document specifying resin quantity, price, and delivery terms.

R

Random Clarified Copolymer (PP) – Transparent polypropylene grade used in food and medical packaging.

Real-Time Market Intelligence – Continuous updates on resin pricing, supply, and demand.

RFQ / RFP (Request for Quotation/Proposal) – Formal process for requesting resin pricing proposals; ResinSmart helps craft RFQs rooted in real-time market intelligence.

Rolling Forecast – Continuously updated resin demand and price projection, more adaptive than static forecasts.

S

Safety Stock – Reserve resin inventory held to protect against supply disruptions like hurricanes or plant outages.

Sales – Resin volumes sold; tracked to gauge demand trends and market strength.

Seasonality – Predictable pricing or demand patterns tied to weather or seasonal events.

Spot Buy Strategy – Opportunistic resin purchases when spot prices fall below index pricing or to meet sudden demand.

Spot Price – Immediate, market-driven resin price; typically higher volatility than contract pricing.

Static Forecast – Fixed projection of resin demand or pricing; less reliable in volatile markets.

Strategic Sourcing – Proactive selection of resin suppliers based on cost, risk, continuity, and innovation; ResinSmart data supports multi-dimensional evaluation.

Styrene – Feedstock for polystyrene, ABS, and other plastics.

Supplier Leverage – Pricing power suppliers hold due to limited transparency or alternative sources.

Supplier Relationship Management (SRM) – Ongoing management of supplier performance, including reliability, responsiveness, and innovation.

Supplier Segmentation – Classification of suppliers by spend level, risk, or strategic value.

T

Tariff Risk – Import duties shifting regional resin supply and pricing; ResinSmart tracks tariff impacts similar to metals markets.

Thermoplastics – Resins that can be melted, shaped, and reprocessed multiple times.

Thermosets – Resins that permanently cure and cannot be remelted.

Total Cost of Ownership (TCO) – Aggregate cost including resin, logistics, duties, and inventory holding.

Trade Flow Shifts – Changes in resin trade patterns due to tariffs, demand shifts, or policy changes.

V

VAM (Vinyl Acetate Monomer) – Used in EVA copolymers, adhesives, and coatings.

Volume Tiers / Rebates – Pricing brackets based on purchase volume; ResinSmart data optimizes tier negotiation to secure improved margins.

W

Weather Risk Premium – Cost buffer built into logistics during hurricane season; ResinSmart predicts these trends to help lock in resilient contracts early.

Weather Volatility – Severe weather events (hurricanes, freezes) that disrupt resin production and logistics.

WTI Crude Oil (West Texas Intermediate) – U.S. crude oil benchmark; movements influence feedstock and resin pricing.