Introducing Supply Dynamics’ OEM Insights
Our weekly roundup of the most current and compelling industry news, updates, and trends related to Manufacturing OEMs and anything that impacts them. Read on to discover the latest in:
- Industry News
- Tariffs and the Trade War
- Metal Trends
Industry News
- British Steel Collapses: Britain's second biggest steel maker collapsed on Wednesday, putting about 5,000 jobs at the company directly at risk, and threatening another 20,000 in the supply chain. (CNN Business)
Tariffs and the Trade War
- Screams Heard Around the World: Trump’s newest imposition of tariffs is causing screams all around the world. U.S. Manufacturers who import parts and materials from China are fed up and want to negotiate a quick trade deal with China. But, is this really a practical long-term solution? (Industry Week)
- An Ace in Beijing's Hand: Chinese President Xi Jinping's recent visit to a company that specializes in rare earth minerals, which are vital to the production of high-tech devices including smartphones, lasers, missile systems, superconductors, and more, has been widely viewed as a form of leverage for China in the trade war—"an ace in Beijing's hand." But China’s latest trade war card may not be as strong as Beijing thinks. (CNN)
Metal Trends
- May Improvements: The Titanium Price Index has improved considerably for the month of May. LONGBOW Research has now recorded four consecutive periods of upward price momentum spread across all key product categories, including a multi-year high price point for benchmark 6'4 titanium ingot. Learn more at LONGBOW Research.
- Turkey has the American Market Back Again: "Compared to our situation during the last eight to ten months, it is good news to have [the] American market back again," says Turkey's Çolakoğlu's chief executive officer Uğur Dalbeler. According to Dalbeler, the U.S. halving of Turkish steel import duty to the blanket level of 25% will help Turkish rebar trade. (Kallanish Commodities)
- Iron Ore Prices Reach a Five-Year High: The benchmark price for cargoes of iron ore sold into northern China jumped 2.4% on Friday (5/17) to $100.40 a metric ton. That level is the highest since May 2014, and up 38% this year. (WSJ)
- The Index Looks Bullish: With the U.S. Dollar Index (DXY) continuing to hold above 97, the index looks bullish. As expected, this means that industrial metals are trending in the opposite direction, including:
- U.S. Steel and Plate: U.S. steel prices showed weakness once again during the past few weeks, with HRC, CRC, and HDG prices dropping while U.S. plate prices registered a small increase after a recent mild price decline. (MetalMiner GUNPOWDER, May 2019)
- LME Base Metals: LME base metals continued their downward trend into May. Although in most cases, prices lifted back up past support levels last week. Except for copper and zinc, which remained below support, tin prices, along with nickel, lead, and zinc, albeit at lower price points than at the start of May, all moved back into a sideways trading pattern. Copper prices shifted lower, moving around the $6,050/mt price level, but also seemed to return to a sideways trend. This marks the fifth week of price declines for copper. However, negative trading volume waned during the fifth consecutive week of the downtrend. (MetalMiner GUNPOWDER, May 2019)
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.
Published on
May 22, 2019