The Commodities Category

Spring Time Sees Ammonia Prices Grow

Spend Matters welcomes this guest post from Verity Michie, market analyst at Mintec.

U.S. ammonia prices have been on a downward trend since the beginning of 2015, reaching a seven-year low in November 2016. So why have ammonia prices suddenly started rising? In order to answer this question, we will need to look at the reasons behind the two-year-long decline.

Cocoa Market Braces for Largest Surplus in 6 Years

Spend Matters welcomes this guest post form Avneet K Deol, market analyst at Mintec.

In the run up to Easter last year, a survey conducted by the National Retail Federation estimated that Americans spend around $2.4 billion on candy, and this year is looking to be no different, with 87% of parents preparing an Easter basket for their children. So in terms of impact for chocolate sales (mainly eggs), Easter is more important than both Halloween and Valentine’s Day. Given the time of year and news that cocoa bean prices have plummeted in recent months, we decided to take look at the reasons for this.

The Week in Metals: More Defense Spending, Less Regulation of… Pretty Much Everything

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President Trump’s $1.1 trillion budget blueprint released Thursday proposes dramatic cuts to the State Department and the Environmental Protection Agency while seeking billions more for defense issues and $1.5 billion for the president’s proposed U.S.-Mexico border wall. Noted trade attorney Alan Price, of the Washington law firm Wiley Rein, said the World Trade Organization case that the federal government filed in January on behalf of aluminum producers will essentially serve as a guide for other industries looking to challenge state-subsidized companies’ overproduction for export in the People’s Republic. The Week in Metals brings you the latest procurement and supply chain news from our sister site MetalMiner.

The Week in Metals: Yes, The Mexican Border Wall is Happening

Not only is the Trump administration asking for bids for its promised southern border wall, but the Department of Homeland Security has also added specifications to its request for proposals. The Dakota Access Pipeline can continue construction of the final eight miles of the project underneath Lake Oahe in North Dakota, a federal judge ruled this week. The Week in Metals brings you the latest in procurement and supply chain news from MetalMiner.

Apple Juice Prices Squeezed in the U.S.

apple juice

Spend Matters welcomes this guest post from Jara Zicha, market analyst at Mintec.

President Donald Trump is still talking about imposing high tariffs on imports from China, even with all of the presidential campaigning behind him. While this is yet to be followed by something more definite, government officials and workers from several industries, including manufacturing, technology and farming, are either voicing their excitement or worry. Importers in the U.S. apple juice industry are likely to be some of those with concerns, as they mainly import apple juice concentrate (AJC) from China.

The Week in Metals: Everything Analysts Think They Know About Copper is Wrong

direct materials procurement

Black is white, right is wrong — you get the picture. Our Lead Forecasting Analyst Raul de Frutos says that most analysts are wrong to say that copper prices will lose value later this year. The Week in Metals brings you the latest procurement and supply chain news from our sister site MetalMiner.

Rising Olive Oil Prices and the US

Spend Matters welcomes this guest post from Avneet Deol, market analyst at Mintec. 

The U.S. consumes approximately 300,000 tons of olive oil a year, with per capita consumption around 1 liter. With domestic production only around 5,000 tons per year, however, the U.S. relies on imports to meet requirements, more than half of which come from Italy and Spain. U.S. imports for 2016/17 are forecast at 304,000 tons, down 3% from the record high last season. In this article, we look at what olive oil prices are currently doing in Italy and Spain, as well as at the factors influencing the market.

A Major Price Risk Just Surfaced in Mexico: Why Unilever, Other Procurement Orgs Are Taking Note

Very recently — and rather quietly, overshadowed by talk of walls and deportations — the Mexican government made a major move that could upend North American supply chains for years to come. On Feb. 17, the Finance Secretariat announced that fuel prices in each of the country’s 90 regions would change on Saturday, Feb. 18, with daily price changes coming into place from that point forward, according to a report from Breakthrough Fuel, a global transportation energy management and advisory firm. This deregulatory move almost instantaneously introduced a new era of commodity price volatility concerns for multinational procurement organizations and their supply chains operating in or through Mexico.

The Week in Metals: Indonesia, Freeport-McMoran Fight Over Grasberg

The world’s second-largest copper mine, the Grasberg open pit mine, in Indonesia, sits idle as its operator, Arizona-based Freeport-McMoran, and the government of Indonesia squabble over permitting issues. President Donald Trump’s administration is mulling changes to how the U.S. calculates trade deficits. The Week in Metals brings you the latest procurement and supply chain news from our sister site MetalMiner.

Base Oils Up for the First Time Since 2010

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Spend Matters welcomes this guest post from Verity Michie, market analyst at Mintec.

Using a vehicle day in, day out can sometimes be taken for granted, but do we actually understand the ins and outs of them? When thinking about the cost of running a vehicle, we tend to think of fuel, tyres and servicing, but we are less likely to think of metal processing fluids and lubricating greases; nevertheless, they are important. These fluids and greases are made from base oils, which are derived as by-products of refining crude oil. Did you know that something as crucial as engine oil for your car is made from around 80%–85% of base oil?

The Week in Metals: ‘Member How Strikes Affect Copper Supply? ‘Member Dat?

copper

Remember when Lead Forecasting Analyst Raul de Frutos warned that work stoppages at major mines Grasberg and Escondida could threaten copper supply and cause prices to rise higher? Guess what happened on Monday? The Week in Metals brings you the latest in procurement and supply chain news from our sister site MetalMiner.

US Propylene Prices Up Over 100%

plastic

Spend Matters welcomes this guest post from Rajiv Joarder, knowledge team leader at Mintec.

U.S. propylene prices are making headlines yet again, with the steepest price incease in recent years seen this January 2017. At the start of Q4 2016, we reported on propylene prices rising due to factory closures in the U.S. Five months later, prices have risen for similar reasons. But only now are we heading into the peak season for global plastic demand, while the supply situation looks like it could be even bleaker in the near future, due to upcoming factory maintainance period in the E.U. Could this be the storm buyers fear?