Competitive Cost & Margin Analytics

Assess the cost and margin positions of operating chemical plants according to geography, capacity, time, technology, feedstock, operating rate and integration level.

How confident are you in your ability to evaluate the long-term competitiveness of operating plants?

The Chemical Competitive Cost & Margin Analytics (CCMA) 12-months subscription provides an excel model, updated on a quarterly basis, aligned to IHS Markit comprehensive production capacity database, technology and economic evaluations and long-term price forecasts. The service provides an interactive tool with the full functionality needed to effectively perform your longer-term strategic analysis and benchmark the competitive position of operating chemical plants. Key features include:

  • Production cash cost and margin estimates, identified by individual plant
  • Functionality to generate estimated economics for hypothetical plants
  • User-defined price adjuster model, from product price to immediate feedstock level and global crude oil price
  • Annual cost/margin curves: 5 years history and 10 years forecast
  • Monthly cost/margin curves: 3 months history and 15 months forecast
  • Global plant list with technology and capacity data
  • Regional feedstock, by-product and utility price forecasts
  • Energy price basis and energy outlook
  • Executive overview and methodology

How do our clients use the Competitive Cost & Margin Analytics service?

COMPETITIVE BENCHMARKING

PORTFOLIO IMPROVEMENT

PROCUREMENT STRATEGY

‒ Evaluate competitive position of existing
assets locally, regionally or globally
‒ Review cost & margin estimates for
competing assets by location & technology
‒ Understand impact
of new capacity to existing assets’ performance

‒ Understand risk and exposure to feed stock price fluctuation
‒ Assess relative competitiveness
of future hypothetical assets
‒ Build value based commercial strategies
‒ Explore how economics shift under
different future price scenarios

‒ Understand risk and exposure to feed stock price fluctuation
‒ Assess relative competitiveness
of future hypothetical assets
‒ Build value based commercial strategies
‒ Explore how economics shift under
different future price scenarios

Using an interactive, data-rich Excel model that calculates production costs and margin estimates by chemical plant, you can:
Evaluate Long-Term Competitiveness of a Plant
‒ Understand impact of market fluctuations with 10 year annual forecast
‒ Leverage the crude adjuster model to define and alter price forecasts to identify exposure
‒ Input estimated plants to grasp competitive position relative to operating assets
Calculate Impact of Market Changes on Cost and Margin Performance
‒ Shift from annual to monthly curves to understand impact of short term change
or plant shutdown
‒ Alter oil/feedstock/product price to anticipate the effect of a volatile market
‒ Compare multiple time-periods to understand the longevity of a market change
and assess impact of capacity additions
Inform Purchasing Strategies
Understanding your suppliers cost structure and competitiveness is a key component
of a rigorous procurement strategy.
‒ Leverage annual forecast curves to assess how the marginal cash cost will adjust
over time
‒ Understand the cost differential of an integrated vs. non-integrated plant
‒ Customize price sets to grasp how your suppliers competitive position could shift

Key Features
‒ Production cash cost and margin estimates, identified by plant
‒ Functionality to generate estimated economics for hypothetical plants
‒ User-defined price adjuster model, from product price to immediate feedstock level and global crude oil price.
‒ Annual cash and variable cost and margin curves: 5 years history & 10 years forecast
‒ Monthly cash and variable cost and margin curves: 3 months history & 15 months forecast
‒ Global plant list with technology and capacity data
‒ Regional feedstock, by-product and utility price forecasts
‒ Energy price basis & energy outlook
‒ Executive overview & methodology