OEM Insights ~ July 17th

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: Europe Joins U.S. Companies Moving Out of China
2. Trade War: China's Economy Grows at Slowest Rate in Nearly 30 Years
3. Metal Trends & Market Analysis: Nickel Surges to 11-Month High on Funds Buying

Industry News

• Trump Signs Order Aimed at Maximizing Use of American-Made Products and Materials: On Monday, 7/15, President Trump signed an executive order that will require federal agencies to purchase products using more American components. Trump said his order is designed to boost the percentage of U.S. components for qualifying American-made products from 50% to 75%. (Associated Press)

• Europe Joins U.S. Companies Moving Out of China: The trade war is remapping global supply chains, to the detriment of Chinese manufacturing. According to recent survey results, the percentage of businesses that have begun sourcing from new countries, or have imminent plans to do so, was high for both the U.S. and EU—80% and 67% respectively. (Forbes) 

Trade War

• China's Economy Grows at Slowest Rate in Nearly 30 Years: The world's second-largest economy is feeling the effects of a prolonged trade war with the US—its gross domestic product grew at 6.2% in the second quarter, down from 6.4% in the previous and the slowest quarterly growth rate since 1992. (CNN)

• Pentagon Races to Track U.S. Rare Earths Output Amid China Trade Dispute: According to a government document seen by Reuters, The Pentagon is rapidly assessing the United States’ rare earths capability in a race to secure a stable supply of the specialized minerals amid the country’s trade conflict with China. Miners have been asked to outline plans to develop mines and process materials by July 31^st. The government seeks to understand how quickly American mines could be producing these minerals and how much. (Reuters)

Metal Trends & Market Analysis

• Nickel Surges to 11-Month High on Funds Buying: Nickel prices on Tuesday (7/16) jumped to their highest in 11 months as some funds pushed up their purchase of the metal pegged to benefit from the expanding electric vehicle (EV) industry. Additionally, benchmark three-month nickel on the London Metal Exchange (LME) climbed as much as 2.3% to $13,980 per ton, its highest since August 2018. (Reuters)

• Alumina Rollercoaster Continues with 15% Decline in Global Prices Since May: Global alumina prices have plummeted over the past two months due to poor demand and a surplus of excess cargoes in the market. (Metal Bulletin) 

About Supply Dynamics: Supply Dynamics provides dozens of Fortune 500 manufacturers with real-time visibility and control over the material requirements of their extended supply chain. Our innovative supply chain analytics solutions allow our customers to improve efficiency and predictability and to reduce the cost of raw materials and component parts that go into their products. To learn more, visit www.supplydynamics.com.