The End of Cheap Oil

1
The End of Cheap Oil

• Means Higher Stretch Film Prices

2
Low Energy Prices May Be Gone Forever

• Oil settles above 60, another record
• Pickens Oil spike will lead to 3 gas "We'll see
  it within a year," T. Boone Pickens June 27, 2005
  

3
Stretch Film Pricing Trend Upward

• With energy pricing moving up, stretch film
  pricing will also trend up over time.
• Short term supply and demand imbalances will
  cause occasional declines but the trend will
  remain up over time.

4
Resin Increases Announced

• Resin Increases announced for July and August
  2005
• Stretch Film Pricing to increase 9 August 1st
  and probably September 1st
• Expect CDI Increases of 0.06 per pound in
  August and Sept.

5
There Is Some Good News

• The Good News is that you can do something to
  help control and reduce your stretch film cost.
• New Technology stretch films offer you better
  performance at reduced costs.
• These New Technology stretch films can give you
  80 gauge performance with a 45 51 gauge film
  with major savings.
• Remember, the price you pay is not what it costs
  to useWhy pay more, when you can pay less for
  the same level of performance.

6
Infinity PX Stretch Film

• Infinity PX Machine Film 13 micron replaces 70
  gauge
• 16 micron replaces 80 gauge machine films
• Infinity PX Hand wrap
• 12 micron replaces up to 80 gauge hand wrap x
  1,500