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Domain · Frameworks

When feedstock prices swing hard, how do you think about protecting a chemical business's margin — through hedging, contract structure, or the plant itself?

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The core exposure is the spread between what I sell product for and what I pay for feedstock — naphtha, natural gas liquids, benzene, whatever the chain starts from — so I manage the spread, not either leg alone.

The full answer: structure, worked example, likely follow-up.

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