Our team started by identifying the key price drivers of acetic acid and understanding the current pricing framework used for acetic anhydride. From this, we developed a sophisticated forecasting model to estimate the prices of acetic acid. To ensure it was robust and reliable, the team tested for correlation and causation across over 25 variables.
Once fully tested, the model was ready for application. By leveraging the forecast model, we helped our client to improve their procurement and commercial strategy. Additionally, our solution enabled a review and update of their acetic anhydride pricing to ensure they were capturing the full market potential. This included optimizing for spot and contract volume allocations.