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What You Should Know About Chemical Trading
The Chemical Trading Business in Houston, TX
Turn your company’s chemical waste into profit with Excel Industrial Group. Our experts specialize in chemical trading services for industrial facilities across Houston, TX, and the United States. If you’re new to the chemical trading business, we’ve compiled a collection of frequently asked questions to get you started.
What Is Chemical Trading?
Chemical trading is a standard business practice involving the handling and repurposing of industrial chemicals. This sustainable practice can be used to account for excess chemicals that will otherwise be deemed as unavoidable hazardous waste. With the proper trade partners and logistics, chemical trading is an excellent way to repurpose chemicals and recoup losses.
Important Facts About the Trading of Chemicals
Chemical trading may seem simple in theory. However, this fast-paced and competitive industry can be challenging to navigate without the proper guidance. To get you started on the right track, Excel Industrial Group is here to explore important facts and the ins and outs of chemical material trading.
Prioritize Constant & Efficient Waste Management
Repurposing industrial waste is not something a business can do haphazardly. The chemical trading business relies on a well-developed plan to ensure proper handling of industrial waste disposal. Constant and efficient waste management is a critical investment to sustain smooth operations, prevent backups, remove waste, and boost profit.
How to Start Trading in Chemicals – The Basics
Venturing into the world of chemical trading requires proactive preparation. First, you will need to examine the volume and type of chemicals you intend to trade. A waste management team may be willing to pay you for extra chemicals you may have, even if they are contaminated or distressed.
Common Chemical Material Trading Products
We are well-versed in the most in-demand chemical trading products. The most commonly bought and traded chemicals include:
- Acids – Sulfuric, hydrochloric, etc.
- Solvents – Acetone, hexane, etc.
- Fuels – Motor oil, gasoline, etc.
- Alcohols – Ethanol, methanol, etc.
- Alkali – Potassium, hydroxide, etc.
- Glycols – Antifreeze, etc.
- Metals – Cobalt, nickel, etc.
- Polymers – PP, PET, etc.
- Monomers – Propylene, etc.
Find the Right Chemical Trading Partner
Chemical trading is a regulated practice, making it crucial to partner with a legitimate business that understands and adheres to the rules. The right partner will have valuable connections and working knowledge of the market. It’s also important to choose a partner equipped to handle the volume and type of chemicals you intend to trade.
Important Chemical Trading Terms
The chemical trading sector has its own language. There are several commonly used terms that you must get familiar with before branching into the industry, including:
- Incoterms – Freight on board (FOB), cost insurance freight (CIF), Cost and Freight (CFR)
- Payment terms – Direct payment (DP) and telegraphic transfer (TT)
- Port of loading/discharge names
Chemical Trading Coordination & Logistics
Depending on the volume and type of chemicals you’re seeking to trade, profit margins may be as little as 5%. To avoid spending more than you’re bring in, it’s essential to be strategic about your logistics planning. Proper packing and efficient trade route planning play a pivotal role in your total landed cost (TLC).
Tips for First-Time Chemical Traders
First-time chemical traders may be overwhelmed by the concept. To empower your latest business venture, we’re here to guide you. Before getting started, there are three key factors to consider, including:
- Get familiar with influential market factors
- Identify your company’s competitive edge
- Research and master import/export regulations
Influential Market Factors
Successful trading in chemicals requires understanding the market. When getting started in the chemical trading sector, it’s important to regularly assess the current trade volumes, prices, and logistics costs. These factors enable you to consider whether it would be more cost-effective for your partner to source a new supplier or to seek an alternative material.
What Sets You Apart
To get ahead of the competition, identify your competitive edge. We recommend asking yourself the following questions:
- Why should companies do business with you instead of a larger/international company?
- Do you offer a specialty, hard-to-source chemical?
- Are you offering surplus chemicals at a better rate than the competition?
- How convenient are the logistics of your transaction?
Always Do Your Research
The chemical trading sector is subject to many compliance standards and regulations. To streamline your transactions, always do your research. If the company looking to buy your excess chemicals is located in another country, do your homework on existing import and export guidelines for your particular industry.
Your Knowledgeable Chemical Trading Partner
Not all companies are equipped or experienced enough to provide proper disposal and storage, but Excel Industrial Group is. With a vast knowledge of industrial chemicals, we know which ones are likely to be repurposed or salvaged. Moreover, we excel in safe handling and proper disposal practices even if your excess chemicals cannot be traded.
Choose Excel Industrial Group
Excel Industrial Group sets the standard for effective chemical trading solutions. We ensure unused chemicals are processed in compliance with local, state, and federal regulations and handled in the safest, most environmentally friendly manner. With an extensive network of resources and potential buyers, we maximize the value of chemicals that would otherwise be deemed hazardous waste.
Contact Us for High-Value Chemical Trading Solutions
If you’re interested in the chemical trading business, you’ve come to the right place. Excel Industrial Group is here to help you master your role as a chemical trader and supercharge your profit. To learn more about the benefits of chemical trading, contact our team today.