OEM Insights ~ February 6

Supply Dynamics’ OEM Insights

Drive results and make informed decisions with OEM Insights

Take a look at this week's roundup of the most current and compelling industry news, updates, and trends related to OEMs and anything that impacts them. Read on to discover the latest in:

1. Industry News: Manufacturing Grows in January
2. Trade War: Trump Administration Denies More Tariff-Exemption Requests
3. Metal Trends & Market Analysis: Copper Prices Slump 10%

Industry News

• Manufacturing Grows in January: In December, the IHS Markit and ISM manufacturing indexes diverged sharply, with the Institute for Supply Management's (ISM) gauge showing the worst manufacturing report in a decade and Markit's showing a solid reading well above 50. Now, in the first month of 2020, the ISM has reported growth in the manufacturing sector, with the January PMI increasing to 50.9%, up from its dismal adjusted December reading of 47.8%.   (Industry Week)

• The Coronavirus Could Cost China's Economy $60 Billion This Quarter: Though the economic impact of the coronavirus is still impossible to determine, some economists have said that China's growth rate could drop 2% this quarter, a decline which could mean $62 billion in lost growth. (CNN) 

Trade War & Global Relations 

• Trump Administration Denies More Tariff-Exemption Requests: Trump administration officials are granting fewer exemptions to tariffs on Chinese imports, with the approval rate recently plunging to 3% in the third round of levies, down from 35% in the first two rounds. (WSJ) 

• U.K. Hopes for Trade Dimmed by Coronavirus: Some analysts say that the slump in Chinese markets and nearly every financial instrument and commodity-related to the Chinese economy is a bad omen for the U.K.’s newfound trade campaign. (Bloomberg) 

Metal Trends & Market Analysis

• Copper Prices Slump in January:  Copper prices slumped by 10% in January, marking the heaviest monthly fall since 2015, and warning that China’s battle with the coronavirus could be bad news for metals demand. (Reuters)

• High Turnover Sees LME Aluminium Price Hit Three-Year Low: The three-month aluminium price on the London Metal Exchange (LME) settled at a three-year low at the close of trading on Monday (2/3), below the $1,700 per tonne support level against a 16-month high in turnover.  (Metal Bulletin) 

About Supply Dynamics

Supply Dynamics provides leading Fortune 500 manufacturers with real-time visibility and control over the “material-input” requirements (metals, plastics, electronics, etc.) of their extended supply chain. Our innovative solutions allow our customers to reduce the cost of raw materials and component parts that go into their products, enhance collaboration with supply chain stakeholders, and ensure that the timely purchase and supply of material-inputs is never the reason a part is late. To learn more, visit www.supplydynamics.com.