Currency Management for the Chemical Industry
Automate FX risk management processes to protect your margins and reduce FX gains and losses
Get your free company analysisFX management for chemical companies
The organic chemical industry consists of many different players from a broad range of sectors, from upstream drilling and gas exploration companies to downstream chemical manufacturers, and everything in between. As part of this supply chain, we often see chemical distributors that are facing a raft of complex challenges when it comes to currency management. These often include:
- High FX risk and extended payment cycles leading to increased FX gains and losses
- Large amounts of transactions with significant time gaps between the purchase and payment dates
- Poor or sub-optimal hedging strategies on both the supply (imports) and sales (exports) side
- Manual hedging execution processes and lack of automation, placing a high level of burden on the finance team
- Lack of competitiveness due to not selling and purchasing in local currencies
- External factors such as climate, production, regulation or the use of substitute products affecting prices
Chemical distributors and specialty chemicals companies are already using Kantox solutions to automate their hedging execution and reduce P&L deviations
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Get the Chemical Industry report
Leave us your details and be among the first to get a copy of our report, The Role of FX in the Chemical Industry. Based on real industry insights, we share:
- Why FX risk arises and how it affects different players in the supply chain
- How companies in the chemical industry leverage currencies to gain a competitive edge
- The advantages and limitations of some common FX risk management practices used (e.g. pre-hedging, ad hoc hedging and applying FX markups
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Download the Business Case
European gas company, Lampogas, faced high FX risk and an extended payment cycle with a significant time gap between pricing and payment dates.
After implementing our solutions they were able to:
- Monitor exposure in real-time and automatically execute hedges to secure their margins
- Increase efficiency by pre-hedging their purchases based on the reference rate used to set their selling price
- Take advantage of forward points to boost profit margins
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Get your free FX risk analysis
We’re already helping other chemical companies unlock their full FX risk management potential. Interested in learning how?
If you would like to find out how you can improve your currency management by applying automated hedging solutions, leave us your details and we will be in touch to prepare your free company analysis.
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Key Benefits for chemical companies
- Gain full visibility over your FX risk and monitor exposure in real-time; sort easily by what’s hedged and what’s accumulating
- Minimise FX gains and losses by using a flexible hedging strategy which allows you to hedge your exposure for the duration of the sales cycle
- Guarantee your margins by automatically executing hedges at the right time for your business
- Improve your pricing strategy and become more competitive with tools that allow you to remain aligned with FX market movements
- Automate your processes to save time and liberate your finance team from manual processes
- Accelerate international expansion by using currency management as a tool to for buying or selling in local currencies
- Improve the customer and supplier experience by managing your own FX conversions or pay local suppliers without the need for unnecessary conversions
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