Page 12 - Plastics News October 2021

AIPMA AT woRk

Mcx-Oil & Gas Fundamentals & Energy Price Risk Management

IN PARTNERSHIP WITH:
MULTI COMMODITY EXCHANGE OF INDIA (MCX), MUMBAI

s an industry, we all keep looking for Multi Commodity Exchange of India benefit from hedging techniques.
Anewer opportunities to develop our (MCX) offers the benefits energy price
businesses. One such opportunity comes risk management to the value chain Key Takeaways:
to us in the form of Fundamentals and participants engaged in energy intensive • Reduce Raw material price volatility
Energy Price Risk Management. AIPMA and allied industries. Additionally, we also • Unlocking working capital tied up
had organised the webinar on Mcx-Oil had deep understanding about the risks for raw material purchases
& Gas Fundamentals & Energy Price associated with price volatility and market
Risk Management On October 8, 2021 complexities that has now become the • Non-transparent resin prices
The program started at 3 :30 pm , with new and normal for companies having • Volatile Crude oil prices are
Shri. Deepak Ballani – Director General, direct or indirect exposure to crude oil responsible for 90% variation in
AIPMA, introducing Shri. Kishore & natural gas. Thus, managing energy resin prices
Sampat - President AIPMA and Shri. price risk is no longer a choice, but a
Arvind Mehta – Chairman Governing compulsion for the sustenance of these • Crude oil futures prices serve as a
Council AIPMA who set the note for business enterprises. proxy for resin prices
the program. • Unable to pass cost to consumers in
This Webinar has thrown lights on
Mr. Pulkit Kasliwal, CFO, AIPMA competitive scenario
handled the question and answer session Fundamentals, Price Risk Management
and Hedging Process. Hedging is the Our Expert For The Evening Was:
with great aplomb.
process of reducing or controlling risk. Ms. Ruchi Shukla, Head- Energy, MCX
The webinar is mainly focused on It involves taking equal and opposite India Ltd and Mr. Ashish Bhagtani, Sr.
Fundamentals that influence the volatile positions in two different markets such Manager-PMT Energy, MCX India Ltd.
energy prices & Hedging energy price as physical and futures market. The After the presentation by the expert, the
risk using energy derivative contracts objective of this process is to reduce floor was left open for Q&A session to
in which we have a clear understanding or limiting risks associated with price answer any doubts the attendees may
about the Price drivers of Energy Market. change. A good hedging practice, hence, have. The webinar was attended by over
This program provided insights about encompasses efforts by companies to get 155 people from the Export-Import and
Energy futures and options contracts. a clear picture of their risk profile and Trading Industry.

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