Posted: July 29th, 2014 | Author: Pascal Blanc | Filed under: China, Commodities, Cotton, India, USA | Tags: cotton china, cotton forecast, cotton india, cotton outlook, cotton supply, cotton usa | No Comments »
Cotton has tumbled 23 percent this year, the most among 22 raw materials in the Bloomberg Commodity Spot Index, on concern that harvests will exceed use for a fifth straight year. The International Monetary Fund cut its outlook for 2014 global economic growth as expansions weaken from China to the U.S.
Cotton prices last traded around 50 cents a pound in April 2009. On Friday, cotton for delivery in December, the most actively traded contract on the ICE Futures U.S. exchange, fell 1.1%, to 65.35 cents a pound. It was the lowest closing price since Oct. 12, 2009, and down 3.5% for the week. The front-month contract, for October delivery, ended down 1.9%, at 65.16 cents a pound.
Read the rest of Cotton hits 2009 lows as supplies rise » » »
Posted: July 28th, 2014 | Author: Tom Bowers | Filed under: Best practices, CSR in purchasing, Gem, Greening the Supply Chain, Negotiating with Suppliers, What's Happening in Our Profession | Tags: CSR, supplier, supplier negotiation, supply chain, sustainability, sustainable practice, sustainable sourcing | No Comments »
We have picked up a few tips recently from participating in a Conference Board of Canada webinar where sustainability thought leader and governance specialist, Coro Strandberg discussed the drivers and trends of CSR governance and shared emerging best practices in the Canadian context.
We have also been reviewing the Carbon Disclosure Project and other reports to highlight some of the key points that are useful to the supply chain profession.
Read the rest of Sustainability Trends » » »
Posted: July 28th, 2014 | Author: Pascal Blanc | Filed under: China, Commodities, Copper, Indonesia, Metals | Tags: copper concentrate china, copper concentrate indonesia, copper concentrate price, copper indonesia, copper price | No Comments »
Indonesia introduced in January its controversial ban on exports of unprocessed minerals and ore. Under a revision of the tax, Freeport will pay a 7.5 percent duty on its copper concentrate exports, but that rate falls as it spends on its smelter, hitting zero once investment in the project exceeds 30 percent of total cost.
The ban on exports forced Newmont to declare force majeure on copper sales from Indonesia earlier this year, putting roughly 80 percent of its Batu Hijau mine employees on leave at reduced pay. Disputes and confusion over the new mining rule have halted closely $500 million of monthly mineral ore and concentrate exports.
Read the rest of Indonesia metal-ore ban: copper exports to resume in August » » »
Posted: July 24th, 2014 | Author: Pascal Blanc | Filed under: Commodities, Europe, Metals, Steel, USA | Tags: steel, steel ouput, steel price, steel price asia, steel price europe, steel price north america | No Comments »
Steel prices in Asia and Europe are at around 4-1/2 year lows, partly thanks to falling raw material costs like iron ore, but also oversupply built up since the 2008 financial crisis.
However, in North America, prices are near two-year highs, helped by firm U.S. economic growth and a more measured 0.9 percent rise in steel output in the first half, the World Steel Association data showed.
Via Global steel output near record in June on better economic outlook – Reuters
Posted: July 23rd, 2014 | Author: Tom Bowers | Filed under: CSR in purchasing, Energy, Gem, Greening the Supply Chain, What's Happening in Our Profession | Tags: CSR, energy, green purchasing | No Comments »
For many manufactured products, the majority of their carbon footprint comes from energy used in extracting, refining, processing, manufacturing and transportation.
There are several options for reducing the carbon footprint:
· redesign manufacturing process; use alternative raw materials and new technologies to find energy efficiency savings
· shorten supply chains; reduce CO2 from transport
· Use / purchase renewable energy; renewable energy produces (almost) zero carbon
Read the rest of Cutting Carbon in the Supply Chain » » »
Posted: July 23rd, 2014 | Author: Rod Sherkin | Filed under: Best practices, Commodities, Gem, Negotiating with Suppliers, Steel | Tags: commodities, supplier, supplier negotiation | No Comments »
Two Ways We Engage with Suppliers
As Purchasing professionals, we use two main approaches to establishing prices with suppliers.
The first is through a bidding process. We prepare formal documents and invite several suppliers to participate – a tried-and-true best practice for engaging with suppliers. We know that promoting competition between suppliers is a reliable and effective way to achieve good results.
Read the rest of A Different Way to Negotiate » » »
Posted: July 22nd, 2014 | Author: Pascal Blanc | Filed under: Agricultural, Brazil, Commodities, Corn, USA | Tags: Corn, corn glut, corn price, corn production, corn supply, corn usa, corn yield | No Comments »
Global output of raw corn futures for December delivery fell 1.7 percent to close at $3.72 a bushel on the Chicago Board of Trade. Earlier, the price touched $3.705, the lowest for a most-active contract since July 14, 2010. The price has dropped 26 percent in the past 12 months.
“The growing season continues in nearly perfect form here in the U.S. and in much of Canada,” economist Dennis Gartman wrote in his newsletter. “This relentless bear market shall not end until the nation’s farmers have sold their crops.”
Read the rest of US corn hits 4-year low on crop outlook » » »
Posted: July 21st, 2014 | Author: Pascal Blanc | Filed under: Brazil, Commodities, El Niño, Sugar, Thailand | Tags: el nino sugar, sugar, sugar brazil, sugar future, sugar shortage, sugar thailand | No Comments »
Global output of raw sugar will fall short of demand by about 900,000 metric tons in the 12 months from October compared with a glut of 1.4 million tons in 2013-2014, Rabobank said in a quarterly report. While it’s too early to be certain that the market is passing an inflection point, there’s now a trend toward higher prices, albeit a slow one, it said.
The global sugar market has been trading sideways in the past three months, as prices have been confined in a range between USc 16.5/lb and USc 18.5/lb, according to Rabobank’s Sugar Quarterly Q2 2014. Brazil continues to send conflicting signals to the sugar market. While initial cane production estimates of 570 million tonnes and 32.8 million tonnes of sugar remain for the region, this is subject to revisions, depending on how the weather progresses in the coming months after a long dry period.
Read the rest of Sugar shortage in 2014~2015 » » »
Posted: July 18th, 2014 | Author: Pascal Blanc | Filed under: Best practices, CSR in purchasing, Gem, Greening the Supply Chain | Tags: Best practices, carbon footprint, CSR, Greening the Supply Chain, supply chain | No Comments »
Reducing the amount of carbon imbedded in the raw materials we source can be a very good thing – especially if it helps us meet our Corporate Social Responsibility goals as supply-chain professionals (not to mention helping the planet).
Virescent and ProPurchaser have just developed a tool to measure and manage the carbon footprint of a supply chain. And, we are pleased to announce that our blog readers are invited to take out a free, 3-month trial.
Posted: July 16th, 2014 | Author: Rod Sherkin | Filed under: Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: procurement job, purchasing, purchasing job, purchasing profession, sourcing job | No Comments »
The competition for good jobs today is unprecedented.
Certainly not news. Most of us have had the frustrating experience of applying for a job we really want, only to find hundreds of others had the same idea. We were lucky to receive a response let alone an interview.
Well, there is news and it’s the good kind: a way forward, especially if the job you want involves negotiating with suppliers.
In the following article, we describe an approach that should help you stand out in the crowd: a method of demonstrating you can ‘hit the ground running’; that you will deliver bottom-line savings, the day you start working. Sound too good to be true?
Read on: Land the Purchasing Job You Want