The city of Shenzhen became yesterday the first region in China to introduce a mandatory emissions trading scheme (ETS).”It is a clear indication that they are serious about reducing emissions and bringing down pollution levels.”
Driving down costs by ‘coaxing’ voluntary behavior change. Anyone who survived the social pressure cooker of high school knows about the power of peer pressure.
For purchasing professionals trying to drive down cost, the good news is that peer pressure can have the same impact in corporate corridors as it did in the blackboard jungle.
Rubber fell 21 percent to 238.9 yen on the Tokyo Commodity Exchange this year and is now 55 percent below the record 535.7 yen reached in February 2011. Lower prices should reduce costs for Bridgestone Corp., Michelin & Cie. and Goodyear Tire & Rubber Co., the biggest tiremakers.
The surplus will expand 57 percent to 490,000 metric tons this year, enough to meet U.S. demand for six months, according to RCMA Commodities Asia Group, the Singapore-based company that has traded rubber for nine decades. Futures in Tokyo, a global benchmark, will drop at least another 5.8 percent to 225 yen a kilogram ($2,369 a ton) by the end of December, according to the median of 16 analyst estimates compiled by Bloomberg. Five anticipate 200 yen, a price last seen in 2009.
Shale gas buried underground is estimated to increase recoverable gas in the world by 50%. Shale oil would allow oil reserves to expand by 10%. The US Energy Information Administration changed its estimates after a new study where it took into account twice as many oil and gas fields than in 2011.
Bids for June material were climbing, seen on the HoustonMercantile Exchange as high as 57 cents/lb Mont Belvieu-Williams basis, up from 53-cent/lb levels earlier in the day. Spot ethylene was last assessed Wednesday at 52.75-53.25 cents/lb FD USG.
In a Perfect World
Imagine the negotiating edge you would have if you knew—and could demonstrate—what you SHOULD be paying for the products you buy, especially when suppliers come to you with sad tales about price increases they just can’t hold off any longer because of global commodity price rises.
This is not wishful thinking.
Inventories of all wheat varieties as of June 1, 2014, will total 659 million bushels, the U.S. Department of Agriculture said today in a report. That’s more than the 655 million projected by analysts in a Bloomberg survey and less than the 670 million the government forecast in May. U.S. output will drop this year to 2.08 billion bushels, compared with last month’s prediction of 2.057 billion.
Wheat traded in Chicago, a global benchmark, fell about 10 percent this year on the outlook for rising production. The projected rebound follows drought in 2013 that hurt harvests in Russia, Ukraine, southern Europe and the U.S.
An interesting development from the hotel and hospitality industry as some big players join forces to standardize a carbon footprint methodology.
As 80% of Fortune 500 companies now participate in the Carbon Disclosure Project, we are likely to see more moves in this direction as sectors try to find ways to measure comparative performance within their industry.
We certainly hear a lot about the importance of reducing the amount of carbon our species is releasing into the atmosphere. But we don’t hear much about what this really means to our profession: in other words, how important is a ‘green’ Supply-Chain in North America?
To answer this question we recently sent out a 14-question survey to hundreds of Supply-Chain professionals. The results are in and you may find them interesting.
Three Key Findings.
Steel prices across the globe continued trending downwards in May. Selling figures declined in twenty four of the twenty eight nations in which MEPS conducts research. In the remaining four countries, transaction values were stable.
Excess steel supply and poor demand are expected to continue to exert negative pressure on prices in the short term. Moreover, input expenditure is likely to remain at a low level in the immediate future.