The days are getting shorter, and the nights are getting longer, which means the dog days of summer are nearly over!
Copper prices are following the fall trend and finally cooling down after months of trading well above the $4 mark (and even coming close to $5). A weak Chinese economy and sluggish demand have prices spiraling, even as artificial intelligence and electric vehicle adoption promises more need for copper.
Let’s get down to business!
Gold prices hit a new high in August, passing $2,500 per ounce for the first time. The surge is tied to expectations that central banks could cut interest rates soon.
On the other hand, lower Chinese demand caused copper prices to slump, hitting a five-month low before recovering slightly.
Chinese unwrought copper and product exports dropped 40% from June to July. Although the decline seems steep, it was still nearly double compared to the same time last year.
Overall shipments were up more than 40% compared to last year’s figures.
On the other side of the Earth, workers at Chile’s Escondida copper mine went on strike over payment disputes. The strike ended three days later when the workers’ union agreed to a preliminary agreement.
This has been an exciting year for the supply chain, but we all know how quickly situations can change.
Recently, Kris-Tech talked with Paul Wright, Logistics Performance Director for BlueGrace, a full-service Third-Party Logistics (3PL) provider, to discuss trucking, shipping, and everything supply chain.
The supply is full of moving parts. From managing costs and supply chain disruptions to exploring new technology, this conversation offers key insights to stay ahead of the competition.
Port Congestion: H1 2024 Recap
The situation in the Red Sea and the Suez Canal is still crippling ports around the world.
Ports, especially in Southeast Asia and Europe, are feeling the pain, but ones in the U.S. are straining, too. The Port of Charleston, for example, saw congestion increase 132%, but typically congested ports like Vancouver managed to reduce congestion times in Q2. Other ports, including Houston and Oakland, also reduced their congestion times during the second quarter.
Nearly two-thirds of analyzed ports in Asia saw more congestion, including Manila, which was hit the hardest. Other Asian ports reeling from rising congestion strain were Port Kelang in Malaysia and Singapore.
Meanwhile, two-thirds of ports surveyed in Europe are facing congestion issues, with Antwerp and Valencia reporting slowdowns exceeding five hours. One winner in the European region was St. Petersburg in Russia, which cut a day from its wait, dropping it to 2.1 days in Q2.
Decreasing fuel and diesel prices helped drive consumer prices down for the first time in more than four years. The good news also translated to truck insurance premiums, which decreased for the first time in over a year.
It wasn’t all good news for trucking companies this quarter. Landstar Systems saw an owner-operator decline of nearly 14% YoY.
Packaging and Pulverizing
Despite rising total compensations for CEOs at publicly traded companies, packaging companies didn’t have quite the same results.
High CEO turnover impacted total compensations for several of the 13 NYSE-listed packaging companies looked at by Packaging Dive. Additionally, ongoing consolidation in the space may impact total compensation for CEOs at the newly merged companies.
View the full breakdown here.
PVC (Polyvinyl Chloride)
European PVC prices saw volatility during the summer, as rising oil prices, severe weather concerns, and supply/demand issues impacted production rates.
In Asia, PVC prices tumbled in late July as economic fears, geopolitical tensions, and lower demand struck the market.
China’s PVC prices fell because of decreasing domestic and global demand. The country’s oversupply has forced companies to discount products to increase sales.
PE (Polyethylene)
Data from PlasticsExchange shows that a summer slowdown came about a month late. However, it did not affect spot PE prices.
Spot PE prices stayed largely steady, though some materials are still tougher to find, resulting in premium pricing, including LDPE for injection, LLDPE pellet, and some HDPE for blow molding.
LLDPE (Linear Low-Density Polyethylene)
The U.S. saw decreasing LLDPE prices, but that wasn’t the case in Europe.
U.S. prices fell about 2.5% for Film Butene-based grade FOB Texas as the supply chain and production recovered following Hurricane Beryl. Meanwhile, European supply constraints caused prices to rise about 1% for Film grade FD Hamburg.
Prices were expected to settle down in August in the U.S., thanks to lower demand and better supply. Asia and Europe could contend with higher freight rates and continued supply chain issues.
Podcast | From Finance to Supply Chain and Case Studies from Intel
Jackie Sturm, Corporate VP for Global Supply Chain Operations for Intel, discusses her background in finance and how it’s helped her become successful in supply chain roles. She also touches on her collaborative mindset, keeping up with a data-driven world, and using her experience to drive decisions. (33 minutes)
Interview | Disruptions Aren’t Abating: How Can Supply Chains Cope?
Bob talks with Nulogy CEO Jason Tham about how brands can adjust to the constantly changing supply chain. During the interview, Jason touches on how companies can use agility to combat unexpected problems, what the future of supply management may look like, and how to navigate the new supply chain effectively. (9 minutes)
Podcast | In this episode of Sprott Radio Podcast, Ed Coyne sits down with mining analyst Stefan Ioannou to discuss supply-side challenges in the copper industry. The two also touch on current production levels and their potential impact on future development. Spoiler alert – the world needs much more copper! (22 minutes)
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