MetalMiner

At DPW Amsterdam 2024, MetalMiner's own co-founder Jason Busch, delivered his expert insights on procurement innovation and market leadership. Drawing from his deep experience, Jason shares a story of a past employer regarding the power of networking and PR to boost a company’s stock value. He revisited the revolutionary impact of reverse auctions in industrial procurement. He also emphasized how frequent press releases correlate with stock performance, underscoring lessons learned from tech procurement during the dot-com boom. 🔍 Why Does This Matter? Jason’s session embodied the spirit of 10X procurement innovation, equipping attendees with actionable strategies to improve procurement efficiency. 🔩Yes metal buyers, that means you. 🔩 Stay tuned for more insights and follow-up materials from DPW Amsterdam 2024. #DPW2024 #MetalMiner #ProcurementInnovation #10XProcurement #B2BMarketing

MetalMiner’s own CEO, Lisa Reisman, and Co-Founder/Managing Director, Jason Busch, took the stage this year at DPW Amsterdam 2024. DPW Amsterdam 2024 is the premier global event for procurement professionals. From emerging technologies to hands-on advice, Lisa and Jason showcase how MetalMiner is leading the charge in metals price forecasting and procurement transformation. Lisa and Jason brought decades of industry expertise and a shared vision for how technology is revolutionizing procurement to the center stage. Lisa has spent over 25 years helping businesses navigate the complexities of metals markets. At DPW Amsterdam, she discussed how MetalMiner’s cutting-edge price intelligence platform enables companies to manage commodity volatility, negotiate more effectively, and boost their bottom line. Meanwhile, Jason brings his unparalleled expertise in procurement technology to DPW. Over the years, Jason has helped countless organizations transform their sourcing processes using digital tools and data-driven strategies. At DPW Amsterdam, he dives into how procurement leaders can leverage technology to optimize supply chains, reduce risk, and improve decision-making. Are you ready to redefine your approach to procurement? Stayed turned for incoming clips from Lisa and Jason’s panels at DPW! 

October has been volatile for the aluminum market, and if you’re a buyer, you’re feeling the heat. For weekly updates on aluminum market volatility, opt into our weekly newsletter: https://lnkd.in/eHy4mzb7 With aluminum prices recently spiking to a four-month high of $2,680 per tonne, and concerns over market tightness drawing the LME's attention, navigating these changes requires a strategic approach.  https://lnkd.in/eX2SMr_5 However, the story is not fully told by the increasing prices. As more trades take place in the inter-office market rather than through open exchange, liquidity is turning into a major concern. This change reduces openness, which makes it more difficult for buyers to predict the market correctly and prevents some players from offering competitive prices. https://lnkd.in/exDapY5R Adding to the complexity is the growing concern over an aluminum squeeze, primarily caused by changes in the world's supply chain and warehouse operators' stockpiling. Due to this circumstance, the exchange's available supplies have decreased, currently hovering around 769,275 tonnes, and buyers have been forced to turn to alternative suppliers at higher prices. https://lnkd.in/eRFhJRZc With prices fluctuating and supply unpredictable, proactive hedging strategies can protect your margins. Tools like MetalMiner’s forecasts provide buyers with key insights to anticipate price swings before they hit. agmetalminer.com/insights It's risky to rely too much on one source of supply, particularly when exchange stockpiles are running low. To lessen exposure to market volatility, buyers should expand their supplier base or investigate off-exchange purchase options. Physical delivery contract prices are anticipated to increase as available stock becomes more scarce. When negotiating and planning their budgets, buyers must account for these rising expenses. https://lnkd.in/eKx2CApp Aluminum buyers who succeed in this environment will be those who act early and stay agile. By staying ahead of the trends and using data-driven strategies, buyers can minimize risk and maximize opportunity, even when the market gets tight. #alumiunummarket #aluminumprices #aluminumsourcing #aluminumprocurement #aluminumprices #metalprices #metalminer

It's becoming apparent that there could be supply chain disruptions as the U.S. industrial metal market braces for the aftermath of Hurricane Helene and Hurricane Milton. Florida and the Carolinas are already in turmoil from Hurricane Helene. Hurricane Milton, which is expected to make landfall on Florida's Gulf Coast, will complicate an already difficult scenario. The aftermath of Hurricane Helene could push industrial metal prices upward, particularly steel. As reconstruction begins, there may be a greater need for building materials like steel and aluminum due to the extensive damage to infrastructure. However, demand isn't the only factor. Challenges may also arise for supply. A vital component for numerous sectors, scrap metal, has been hampered by the storm. Steel prices have temporarily increased as a result, and prices may continue to rise in the short-term as scrap becomes scarce. https://lnkd.in/eTmrax2X Furthermore, concerns over possible supply chain disruptions are being raised by Florida's Gulf Coast as Hurricane Milton makes landfall. Production facilities are located in this region, and thus any major damage will have an impact on the U.S. industrial metal supply chain. While companies scramble to rebuild and recover, the demand for raw materials will increase. https://lnkd.in/etRF-E3M The combined impact of these two hurricanes could have long-term impacts on the industrial metal market in the U.S.. The need for resources like steel, copper and aluminum will increase due to building and infrastructure projects, as well as insurance claims and federal monies for disaster assistance. To prevent paying too much for raw materials or experiencing shortages, businesses will need to stay ahead of these market changes. At MetalMiner, we’re here to help. Our team of analysts is closely tracking the impact of these natural disasters on the metal markets. Now is the time to review your sourcing strategies and stay ahead of price fluctuations with our weekly newsletter: https://lnkd.in/eHy4mzb7

How is the port strike going to impact metal buyers? The ILA port strike holds the potential to cause severe delays in the supply of both raw and semi-finished metal products. Due to the disruption of the material flow, numerous industries, including manufacturing, construction and automotive, would encounter serious difficulties. Even a brief strike could potentially cause expensive delays, as customers would find obtaining metals from other suppliers challenging. Long-term strikes could worsen shortages and, in the worst case, force certain industries to temporarily halt production lines as they begin to run low on essential components. About half of the country’s ocean freight is handled by U.S. ports, so a strike might prevent a large number of metal imports from reaching their destinations. Since these ports handle 60% of the world’s container traffic, any disruption could end up crippling the industrial metals industry, with significant repercussions for other sectors that rely on timely imports. (https://lnkd.in/gb7HCcNw) Market insights and ongoing logistics news are essential for purchasers trying to lessen these effects, which MetalMiner’s newsletter covers on a weekly basis. (Subscribe here: https://lnkd.in/gDy8y2_d) The strike could also have an immediate impact on metals prices, as key metal shortages and restricted port operations are likely to drive up costs. In the past, such circumstances have caused abrupt price increases for metals like steel and aluminum as consumers rush to build up supplies in anticipation of disruptions. Stay turned for more strike updates with MetalMiner's weekly newsletter: https://lnkd.in/eHy4mzb7

As most attention on imports is centered around the East & Gulf Coast port strike, I wanted to share a different import-related story: the incredible increase in U.S. imports from Taiwan that we witnessed this July. Two charts below. Thoughts: •The top chart shows imports from Taiwan in millions of dollars (https://lnkd.in/gJYUAHnQ). July came in at $13 billion, 30% higher than the prior record of $10 billion in June! That isn’t normal behavior in data to say the least. •Diving into the data, most of this increase occurred in just one 6-digit harmonized tariff code (out of ~5,000 potential HTC-6 codes). That code was HTC 847330 - Parts & Accessories for Automated Data Processing (ADP) Machines & Units. It’s also worth noting most of the remainder of the July import gains are explained by one other 6-digit HTC: 847150 Digital Processing Units, N.E.S.O.I. As such, the import surge is clearly linked to AI computing demands. •These data are consistent with WSJ just reporting about how AI computing demands are causing a surge (no pun intended) of electricity demand (https://lnkd.in/gypCNR3Y). I’ll be sharing data later this week on some sectors benefiting from continued growth of electricity needs. What the import data tell me is we are still in the opening innings of the AI computing shock. Implication: if these data are any indication, we are just getting started on the expanded volume of trade between Taiwan and the USA to support the AI computing boom. I'm increasingly starting to believe the AI computing boom could mirror the capital investment boom we saw in computers in the 1980s and 1990s that forever changed the nature of work in the USA. #markets #supplychain #supplychainmanagement #freight 

After our discussion last week on dreaded “Black Swan events” https://lnkd.in/epXt4W4p , MetalMiner is now keeping a close eye on the potential International Longshoremen's Association (ILA) port strike on October 1st. The U.S. industrial metals market faces major risks with the looming possibility of a port strike on the East and Gulf Coasts. This strike, expected to impact about half of the nation's shipping capacity, would severely disrupt supply chains, particularly for metals buyers reliant on imports. If the strike begins on October 1, operations at these ports will halt, causing immediate delays and logistical issues. This means longer lead times, higher transportation costs, and potential price hikes due to limited metal availability. As transportation companies add fees to manage the disruption, metal purchasers will feel the strain on their budgets. https://lnkd.in/e3Ker52s The most proactive companies plan ahead for such contingencies. Metal buyers should be keeping alternative suppliers in mind, potentially increasing on-hand inventory, and negotiating flexible contracts with logistics providers to navigate the uncertainty. Moreover, monitoring global metal prices is critical as market volatility is likely to increase due to the potential strike. A strategic, data-driven approach is essential to mitigate risk in what could become a turbulent metals market. As we edge closer to the strike deadline, the metal market could face significant disruptions. MetalMiner will continue to track developments and provide insights to help you make informed sourcing decisions.  For ongoing, weekly information about this potentially massive supply chain disruption, opt into our weekly newsletter: https://lnkd.in/gDy8y2_d

Here’s a Black Swan Event that Needs to be on Your October 2024 Bingo Card! I have been scrolling through LinkedIn and I haven’t seen this issue come up even once in my feed! But it’s a doozy, and if it happens, it’s going to wreak havoc on US supply chains. The event is an Eastern Seaboard and Gulf Coast longshoremen strike which could occur as early as October 1. Doing some quick scanning, here is a short list of metals for which we rely on global shipments: 1. Steel: Eastern and Gulf Coast ports handle a significant portion of US Steel imports. East Coast ports handled 35-40% of US steel imports and Gulf Coast ports handled 10-15% of steel imports. Both the East and Gulf Coast ports accounted for roughly 45-55% of US Steel imports in 2019. 2. Aluminum - the US is 54% reliant on aluminum. We get much of that material from overseas. 3. Copper - We are 41% reliant on refined copper. 4. Nickel - We are 56% reliant on nickel (much comes from Norway, Australia and Finland) 5. We are 75% reliant on Bauxite imports to make aluminum. We get that from Jamaica, Brazil and Guyana. And I didn’t even touch on the steel raw material supply chain which relies upon imported slab, DRI and many other raw material inputs critical for metals supply chains. At MetalMiner, we have learned that shipping disruptions not only cause chaos, lengthened lead times, backlogs etc., but they also drive significant price volatility. There will be price spikes if this contract dispute results in a strike. #metalprices #steelprices #aluminumprices #stainlessprices #nickelprices #supplychaindisruptions https://lnkd.in/eNDg2CEZ

Suppliers only want you to look at what lies above the surface. However, the real metal savings lie below. This is where data science comes into play. In the realm of data science, correlations play a crucial role in shaping effective purchasing strategies for organizations. Even experienced procurement professionals are often surprised to discover unexpected correlations in their commodity purchases. MetalMiner's Insights platform enables the mapping of indices to raw material spending, aiding in cost projections, volatility forecasts, and product evaluation. This data-driven approach also empowers purchasing managers to communicate cost requirements more effectively with management and customers, while AI-driven forecasting boasts a remarkable accuracy rate of over 97%. Furthermore, data science serves as a valuable tool to validate assumptions about commodity price movements, ultimately leading to improved decision-making in procurement. Learn more by reading MetalMiner's free resource "Data Science: The Key to Cost Savings": https://lnkd.in/dZ7qK8mC

We’ve all been there. That moment when the market throws something at you that no one could have predicted. It’s called a Black Swan event: a rare, disruptive occurrence with far-reaching consequences. In the world of industrial metals, Black Swan events can send prices skyrocketing, halt supply chains, and wreak havoc on your procurement strategy. But what exactly are these events, and how can your business prepare? A Black Swan event can have significant, market-altering effects. The COVID-19 epidemic serves as an excellent illustration, causing disruptions in worldwide supply chains and fluctuations in metal prices. Steel, aluminum, and copper prices spiked or plummeted, making procurement a nightmare for businesses. Another instance of a near-overnight fall in metals demand was the 2008 financial crisis. These occurrences have the potential to drastically alter prices and disrupt supply chains for businesses that source metals. Usually, when significant metal markets are affected, there isn't much time to look for substitutes. The outcome? Increased expenses and tardiness. So, what can you do about it? While you can’t predict these events, you can prepare. Don't depend just on one source or area. Distribute your supply chain to reduce dangers. - You can protect yourself from price volatility by using fixed contracts. You will still be protected in the event that spot market prices spike. - When disruptions arise, you can respond quickly thanks to access to real-time pricing projections and market analytics that MetalMiner provides through our platform, Insights. https://lnkd.in/gF2X3_N - Although maintaining safety stock can be expensive, it's a valuable insurance against unforeseen shortages. At MetalMiner, we help businesses stay ahead of market volatility with short and long-term forecasting tools for all of the most commonly sourced industrial metal types, forms and gauges. You can’t control Black Swan events, but with the right strategies, you can protect your bottom line. Want to learn more? Click here: https://lnkd.in/eDtdz4Az #blackswanevent #procurementmanagers #industrialmetals #metalprices #metalminer #metalsourcing