Purchasing articles from November 2007

Purchasing archives from November 2007

No tiptoeing around those resin price hikes.
November 15, 2007... By Staff Purchasing jobs often involve negotiations. And purchasing's smartest negotiators move from conflict to collaboration fast. Match your wits against these pros. Guess their strategy. Then, read what they really did at...

Brazil grows as an electronics center-slowly.
November 15, 2007... By James Carbone The government is relaxing tariffs and encouraging chip design, hoping a viable semiconductor industry takes hold. Buyers involved in outsourcing decisions will be hearing more about Brazil over the next several years,...

Steady as it goes for 2008 chemical distribution.
November 15, 2007... By Wayne Forrest Chemical buyers look to source more through distributors to avoid the waves of price volatility. If one thing can be said for the chemical distribution industry, it is steady. And that steadiness is a good thing...

Rising acetone capacity will bring long-term price relief.
November 15, 2007... By Gordon Graff Buyers of acetone in North America are finding supplies relatively tight and prices substantially higher than they were at the beginning of the year due primarily to an unusual combination of plant shutdowns and delayed...

Business Intelligence.(Survey)
November 15, 2007... By Staff 14% Buyers planning to increase chemical resins sourcing this quarter Source: www.purchasingdata.com WHAT IT MEANS: Buying plans for resins have dropped recently. In August, 29% of buyers polled planned to increase...

"Endemic" lack of polystyrene demand hits supply base.
November 15, 2007... By David Hannon A recent report from Chemical Market Associates Inc. (CMAI) says the supply base for polystyrene has been impacted by the "endemic" lack of polystyrene demand in the U.S. and Europe and production is shifting to fewer and...

Distributors focus on optoelectronics.(Market overview)
November 15, 2007... By James Carbone Electronics buyers can expect distributors to offer more optoelectronic products over the next five years as light emitting diodes (LEDs) and liquid crystal displays (LCDs) are used in more electronics equipment. The...

19 Hot tips to cool energy costs.
November 15, 2007... By Paul E. Teague With energy costs virtually doubling the last few years, buyers are under increasing pressure to find ways to save. Here are the strategies of several pros-and steps everyone can take. Dale Bunton, director of energy...

Image sensor prices to fall.(Market overview)
November 15, 2007... By James Carbone Buyers can expect prices for image sensors to fall over the next several years, despite strong demand from cell phone and digital camera manufacturers and growing demand from the automotive industry. Inventory...

DRAM price slide could end in 1H08.(dynamic random access memory)(Brief article)
November 15, 2007... By James Carbone Memory IC buyers are trying to predict if the DRAM nosedive has finally ended. While the forecasts are unclear, there are pieces of evidence indicating that DRAM prices may, in fact, stop their steep slide in the first...

Intel opens new microprocessor fab.(Brief article)
November 15, 2007... By James Carbone Intel has opened its newest $3 billion microprocessor factory in Chandler, Ariz., and will begin shipping its first 45nm processors in November. The new factory is called Fab 32 and will manufacture microprocessors...

Avnet gets green certification.(Brief article)
November 15, 2007... By James Carbone Avnet says it s environmental management system has been certified to the ISO 14001:2004 standard that specifies a process for controlling and improving a company's environmental performance. The certification is a...

Spansion signs foundry deal.(Brief article)
November 15, 2007... By James Carbone Spansion, a flash memory manufacturer, has signed an agreement with Semiconductor Manufacturing International Corporation (SMIC) for flash memory production. Spansion will transfer its 65nm MirrorBit technology to SMIC...

Car sales boost Chinese chip industry.(Brief article)
November 15, 2007... By James Carbone Strong sales of automobiles in China are driving semiconductor consumption in China. During the first seven months of 2007, 5 million new vehicles were purchased in China-up 24.7% from the same period in 2006,...

Business Intelligence.
November 15, 2007... By James Carbone 26% Electronics buyers who say business is down Source: www.purchasingdata.com WHAT IT MEANS: Few buyers say business is declining which is to be expected during peak buying season for the holiday buildup....

Distribution Briefs.(Arrow Asia Pac Ltd. to provide consignment vendor-managed inventory)(Digi-Key and Crystek Corp. to enter into an agreement)(Mouser Electronics to stock STMicroeletronics STM32 microcontrollers)
November 15, 2007... By James Carbone Arrow gets VMI deal in Asia Arrow Asia Pac Ltd., a business unit of Arrow Electronics, says it will provide that it will provide consignment vendor- managed inventory (VMI) service and its Customer Automated...

Expect mixed prices, slow growth for tantalum capacitors.(Market overview)
November 15, 2007... By Gina Roos The tantalum capacitor market will post single-digit growth this year as demand stays healthy while prices are stable to down depending on case size of the capacitor. Capacitor manufacturers say prices have been very...

Arrow offers supply assurance program.(Brief article)
November 15, 2007... By James Carbone Arrow Electronics and Intel Corp. have finalized an agreement in which Arrow will provide global supply assurance support for a broad range of embedded controller products recently discontinued by Intel. The agreement...

SIA says anti-counterfeiting plan needed.(Semiconductor Industry Association )(Brief article)
November 15, 2007... By James Carbone The Semiconductor Industry Association (SIA) supports a plan to develop a semiconductor anti-counterfeiting trade agreement. U.S. Trade Representative Susan Schwab recently said that the U.S., Canada, the European...

Jabil expands in Italy.(Jabil Circuit Inc.)(Nokia Siemens Networks Italy)(Brief article)
November 15, 2007... By James Carbone Contract manufacturer Jabil Circuit will take over two manufacturing sites in Italy under a new agreement with Nokia Siemens Networks Italy. Jabil will lease the sites from Nokia and will manufacture...

Foundries call for fewer restrictions.(Taiwan Semiconductor Manufacturing Co.)(United Microelectronics Corp. )(Brief article)
November 15, 2007... By James Carbone The Taiwanese government needs to relax restrictions on chip investment in China, according to Taiwan's two largest chipmakers. Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) say...

Samsung unveils 64Gb flash chip.(Samsung Electronics Company Ltd.)(Brief article)
November 15, 2007... By James Carbone Samsung Electronics has developed the world's first 64 Gigabit (Gb) multi level cell (MLC) NAND flash memory chip. The flash memory device, built on 30nm process technology, is a leap forward in the move to higher...

Prices.(Statistical table)(Brief article)
November 15, 2007... By Staff Energy, transportation costs show no signs of slippage (national, 90-day price expect- ations) -------------------------------------------- UP DOWN SAME INDEX Energy ...

Chemicals Get Cheaper.(Brief article)
November 15, 2007... By Staff Market prices of chemicals and polymers lately have been at their highest average in a year but analysts and some producers see slippage ahead. Eastman Chemical CEO Brian Ferguson expects that "normal seasonality will reduce...

Gypsum Softens.(Brief article)
November 15, 2007... By Staff With construction soft, demand for gypsum wallboard has plummeted. Transaction prices are at historic lows from falling demand and oversupply. According to the Gypsum Association, production is projected to decrease 4.5% this year...

Methanol Prices Spike.(Brief article)
November 15, 2007... By Staff Methanol spot prices have almost doubled in recent months-from a 92Acents/gal average in August and September to $1.68 in October. The methanol market has tightened mainly because of production problems at the Methanex plant in...

Paper Going Up.(Brief article)
November 15, 2007... By Staff Paper products are rising in price already and more increases are expected in 2008 because of closed plants in North America and a fall in imports due to the weak dollar. That's the word from the editors of The Kiplinger Letter ,...

Gold Could Hit $679.(Brief article)
November 15, 2007... By Staff Analyst Nikos Kavalis at GFMS upgraded the average gold price forecast for the second half of this year to $700/troy ounce (from $690 earlier) due to the extent of gold buying from investment funds in the past few weeks. Gold...

Economy + Supply.(Statistical table)(Brief article)
November 15, 2007... By Staff Semiconductor buying slows down (national, buying plans, 30 days) -------------------------------------------- UP DOWN SAME INDEX Energy 25% 10% 65% 57.5 Steel ...

Moly Demand Upped to 4-5%.(molybdenum)(Brief article)
November 15, 2007... By Staff Demand for molybdenum is forecast to increase by 4-5%/year said Larry Reaugh, executive chairman of Adanac Molybdenum Corp., at a recent industry event. Last year total global molybdenum production and demand at more than 420...

Cemex to Raise Prices.(Cemex S.A. de C.V.)(Brief article)
November 15, 2007... By Staff Mexican cement producer Cemex said it will raise its prices in the U.S. to offset volume declines in the housing slowdown. Cemex expected demand for its cement for U.S. housing to plunge about 36% in 2007 and it will raise prices...

Eyes on Saint Gobain.(Compagnie de Saint-Gobain S.A.)(Brief article)
November 15, 2007... By Staff Building materials maker Owens Corning has agreed to divest parts of its business to acquire the Vetrotex glass fibre reinforcements and composite fabrics unit of French firm Saint Gobain. The Federal Trade Commission said Owens...

U.S. Steel Takeover Okayed.
November 15, 2007... By Staff Shareholders of Canadian steel firm Stelco have voted to approve the company's $1.1 billion takeover by U.S. Steel Corp.

FedEx Ups 2008 Rates.(FedEx Express)(Brief article)
November 15, 2007... By Staff FedEx express will raise its 2008 shipping rates by 4.9% on average, after accounting for a reduction in its fuel surcharge. That's a significant jump from FedEx's 3.5% increase a year ago. FedEx officials said the company would...

Mobile Phones to Grow.(Brief article)
November 15, 2007... By Staff Jpmorgan Chase & Co. expects worldwide mobile phone shipments to grow by 20% this year, more than expected, as demand from emerging markets like China and India increases. Shipments will rise to 1.2 billion units, compared with a...

Economy Remains Weak.(Brief article)
November 15, 2007... By Staff The latest soundings of the U.S. economy show continuing signs of weakness. Sales of newly built homes over the summer were weaker than previously estimated, third quarter manufacturing was subdued, business inventories have...

Steel Demand Could Rise.(Brief article)
November 15, 2007... By Staff Steel demand could show substantial improvement in early 2008 as purchasing improves from such end-use markets as industrial products, consumer capital goods, automotive and energy. That's the view of analyst Mark Parr at KeyBanc...

Leadtimes come back in.(Statistical table)(Brief article)
November 15, 2007... By Staff Leadtimes come back in (monthly weighted average in weeks) ------------------------------------------------------ October September August SHORTEST LEADTIMES Carbon...

Recession Worries Some...
November 15, 2007... By Staff Is the U.S. economy headed for a recession-or are we already in one? A recent CNN poll found that 50% of Americans think we're already in a recession. A Financial Services Forum survey of top financial-services-firm CEOs said...

We're already in a recession.
November 15, 2007... By Staff Jim Rogers , investor and co-founder of the Quantum Fund 50/50 chance of a recession Jim Owen , CEO of Caterpillar, predicting a 50/50 chance Alan Greenspan , former chairman of the Federal Reserve Recession is...

...But Not Greenspan.(Alan Greenspan )(Brief article)
November 15, 2007... By Staff Former Federal Reserve Chairman Alan Greenspan said the U.S. will probably not slip into a recession despite the continuing housing slowdown. At a recent conference, Greenspan said chances of a recession are "less than 50-50" but...

Anti-Piracy Pact Planned.(Brief article)
November 15, 2007... By Staff A new anti-counterfeiting pact is being proposed by major industrialized countries seeking to clamp down on money-spinning piracy in global trade. The U.S., European Union and Japan want to negotiate an Anti-Counterfeiting Trade...

Finns Sell Paper Plants.(Stora Enso Oyj)(NewPage)(Brief article)
November 15, 2007... By Staff Finnish pulp and paper company Stora Enso has pulled out of the North American market, selling eight coated paper operations in the U.S. and Canada to NewPage, the paper-making subsidiary of the U.S. investment company Cerebrus...

Glass Fiber Capex Up.(Agy )(Brief article)
November 15, 2007... By Staff Agy has increased production capacity by 50% of its S-2 Glass-brand fiber reinforcements used in the defense and aerospace markets. By increasing its production capacity, the Aiken, S.C., firm expects to meet demand for fiber...

Credit Crunch Not Over.(Brief article)
November 15, 2007... By Staff Commodity prices will remain volatile for the near future and the credit crunch is not over yet, according to Don Lindsay, CEO of the second biggest zinc producer, Teck Cominco. "The credit crunch has not run its course, and...

Bayer Hikes Resin Price.(Bayer MaterialScience AG)(Brief article)
November 15, 2007... By Staff Bayer material science is raising prices for its Makrolon, Bayblend, and Makroblend resins by 9Acents/lb in North America, effective November 15. "This step has been taken as a result of constantly high costs for raw materials and...

Timken Ups Steel Prices.(Brief article)
November 15, 2007... By Staff Timken Co. is increasing base prices on hot-rolled, cold-finished and single-thermal-treated special bar quality products by $30/ton, effective Dec. 1. Raw material surcharges will remain in effect, Timken said in a statement.

Speculation is Boosting Oil.(Shell Oil Company's Peter Voser)(Brief article)
November 15, 2007... By Staff Current record oil prices around $90/barrel are being supported by speculation and geopolitical tension rather than any fundamental factors, says Peter Voser, Shell's CFO. "We find it hard to explain current prices," Voser tells a...

Copper Expected to Slip.(Brief article)
November 15, 2007... By Staff Copper is used extensively in wiring and piping, so any slowdown in construction activity is likely to have a pronounced impact on North American demand for the red metal. Thus, the dramatically slowing construction activity in...

Aluminum Prices Dip.(Brief article)
November 15, 2007... By Staff Expected continuation of sluggish demand in North American markets in 2008 will result in primary ingot averaging $1.05/lb worldwide in 2008, forecasts global metal strategist Jon Bergtheil at J.P. Morgan & Co. offices in London....

Cheaper Ethylene in 2008.(Brief article)
November 15, 2007... By Staff Ethylene prices have risen 31% this year to 51Acents/lb in October-bringing the year-to-date average to 41Acents-but they could slide in 2008. Reason: Throughout the Middle East and Asia, ethylene supply is building. Supply has...

Medical equipment firm puts supply chain technology as top priority.(World Precision Instruments Inc.)
November 15, 2007... By David Hannon The two-pronged business model at World Precision Instruments (WPI) of Sarasota, Fla. requires management of two supply chains and two logistics strategies. On one hand, WPI is a manufacturer of medical laboratory...

Business Intelligence.
November 15, 2007... By David Hannon 54,000 Number of new truck drivers needed each year to meet demand Source: American Trucking Associations WHAT IT MEANS: The trucker driver shortage remains an issue despite steep declines in trucking demand...

Demand remains high, rates continue to peak.(Brief article)
November 15, 2007... By David Hannon Dry bulk ocean freight rates continued to set records in October as demand for ocean shipping of raw materials far outpaces capacity. The Baltic Dry Index, which tracks the rates for shipping dry commodities, cracked...

Demand, rates to remain low for LTL, truckload well into 2008.(less than truckload)
November 15, 2007... By David Hannon Demand for both truckload and less-than-truckload shipping will remain weak heading into 2008 and pricing for both modes is expected to continue down. In a recent research note to clients, Bear Stearns analysts said "our...

Slowing economy splits U.S. air freight market.(Brief article)
November 15, 2007... By David Hannon The slowing U.S. economy has impacted the U.S. air freight industry on both sides-while some providers are suffering due to lower volumes, others are expanding their service offerings in an attempt to make the most of the...

Freight forwarders targeted in price-fixing investigation.(Brief article)
November 15, 2007... By David Hannon European and U.S. regulators in October raided several freight forwarding firms as part of a price-fixing investigation. Department of Justice spokeswoman Gina Talamona said "The antitrust division is investigating the...

Founders close on U.S. Xpress buy.(Patrick Quinn and Max Fuller)(New Mountain Lake Acquisition)(Brief article)
November 15, 2007... By David Hannon Truckload carrier U.S. Xpress has been acquired by New Mountain Lake Acquisition, a group headed by Patrick Quinn and Max Fuller, two of the founders of U.S. Xpress. Quinn and Fuller unveiled plans in June to buy the...

No trouble sourcing light metal in 2008.(Market overview)
November 15, 2007... By Tom Stundza The aluminum economy will weaken in 2008 due to a woeful housing market and flat automotive production, keeping supply plentiful and prices soft. Purchasing of aluminum mill products in North America is likely to drop...

Production growth will outpace sales; steel trade will expand.
November 15, 2007... By Tom Stundza World steel consumption is expected to increase by 6.8% next year to 1.28 billion metric tons but there still could be a price-depressing global surplus as high as 160 million tons since production is projected to increase...

Big drop expected for 2008 prices as world market goes into surplus.
November 15, 2007... By Tom Stundza Analysts at ABN Amro bank in London see nickel prices unwinding after a blistering rally that started in 2001, with the market staying in surplus around 100,000 metric tons. Despite relentless Chinese stainless steel...

August imports crashed 22%.(Brief article)(Statistical data)
November 15, 2007... By Tom Stundza Total steel imports fell 22% in August to 2.56 million net tons, down from July's level of 3.28 million tons, according to preliminary data issued in mid-October by U.S. Department of Commerce. Imports of hot-rolled steel...

Despite buyer complaints, tariffs upheld on hot-rolled sheet from six nations.
November 15, 2007... By Tom Stundza In a decision applauded by domestic steel producers and jeered by steel-buying manufacturers, the U.S. International Trade Commission (ITC) voted last month to extend dumping duties on hot-rolled steel imported from China...

Metals Chips.(Wm. R. Hubbell Steel Corp. to close before 2007)(Bethlehem Aluminum to acquire Pennsylvania Steel metal warehousing and processing firm)(KPS Capital Partners to buy Olin metals and Olin Brass)
November 15, 2007... By Tom Stundza Hubbell Steel , a Gibraltar Industries subsidiary, will be closing before the end of 2007. The service center specializing in coated and painted mill products was acquired by Gibraltar in 1995. It has annualized sales of...

Hydro eyes further Middle East smelting growth.(Brief article)
November 15, 2007... By Tom Stundza Further expansion of Norsk Hydro aluminum smelting capacity in the Middle East is in the cards once its greenfield project in Qatar is up and running, the Norwegian company tells Dow Jones Newswires. "We're looking now...

Nippon Steel to buy Brazilian slabs in 2011 to cement partnership.(Usinas Siderurgicas de Minas Gerais S.A.)(Brief article)
November 15, 2007... By Tom Stundza Japanese steelmaker Nippon Steel will start purchasing a million tons annually of steel slabs from its Brazilian affiliate Usinas Siderurgicas de Minas Gerais, or Usiminas, in 2011, the Nikkei Japanese business daily...

Luvata switches metals procurement strategy to one team.
November 15, 2007... By Tom Stundza Global copper products manufacturer Luvata of Finland has consolidated metals procurement under a team led by Bob Kickham, senior vice president for procurement, who is based in London. His new purchasing organization will...

Tight supplies, strong Chinese demand bolster nonferrous metals outlook.
November 15, 2007... By Tom Stundza Base metal prices will ride a wave of tight supply, dollar weakness and Chinese demand to bolster prices into 2008 but the picture further out is murkier. A recent Reuters report outlined the views of several metals analysts...

Zinc prices show no signs of a surge.(Brief article)
November 15, 2007... By Tom Stundza Zinc prices averaged $1.38/lb in spot sales on the London Metal Exchange (LME) in the first week of October, an increase from the September average of $1.31 but nowhere near the nine-month average of $1.56. However, the...

AK Steel increases steel capex.(Brief article)
November 15, 2007... By Tom Stundza AK steel will invest $180 million in new equipment to lower production costs and increase capacity at two specialty steel operations in Ohio and Pennsylvania. The West Chester, Ohio-based steelmaker will make the capital...

Business Intelligence.(Brief article)
November 15, 2007... By Tom Stundza $3.69 December copper price Source: Comex WHAT IT MEANS: December-delivery copper futures have risen 6¢/lb lately, underpinned by the continued decline in the dollar, firmer tone in crude oil prices, and...

Heavy steel prices could stay high in 2008.(Brief article)
November 15, 2007... By Tom Stundza Prices of steel plate and structural beams are expected to increase in coming months because of 4.5% growth in a key market segment, nonresidential construction. Plate has slipped from the $750 range to the $680 region...

Prices are slipping on increasing supply.(tungsten )(Brief article)
November 15, 2007... By Tom Stundza Tungsten prices are sliding slightly this month to an average $11.88/lb from improved supply, after averaging $12.49 in the domestic market for the past 10 months. For the 10 months before that, when supply was very tight,...

Indirect trade deficit continues to rise; mills and users alike express concern.
November 15, 2007... By Tom Stundza The most-recent analysis of so-called "indirect steel trade" shows that net imports of steel-intensive products were 19.2 million tons in 2006 based on a new high of 39.8 million tons of imports and exports of 20.6 million....

Newmont is buying Miramar Mining.(Newmont Mining Corp.)(Brief article)
November 15, 2007... By Staff Newmont Mining agreed to buy Canadian gold company Miramar Mining for $1.52 billion as the Denver-based company tries to address its shrinking mineral reserves. Last month, Newmont warned of higher costs and dwindling reserves...

Alcoa will modernize Cleveland Works to provide die forgings for F-35 Fighter.(contract with Lockheed Martin Corp.)(Brief article)
November 15, 2007... By Tom Stundza Alcoa will invest $24 million in new machinery, equipment and infrastructure improvements at Cleveland Works so the Pittsburgh-based company's Alcoa Power and Propulsion business can fulfill a 10-year $360 million contract...

Minnesota Steel gets permits for $1.6 billion project to turn ore into metal.(Minnesota steel industries )(Minnesota Pollution Control Agency )(Brief article)
November 15, 2007... By Tom Stundza Minnesota steel industries has received construction permits from the Minnesota Pollution Control Agency needed to complete the six-year, $1.6 billion taconite-to-steel project in Nashwauk, Minn. Minnesota Steel plans to...

Gerdau Ameristeel to sell $1.59 billion in shares.(acquisition of Chaparral Steel Co.)(Brief article)
November 15, 2007... By Tom Stundza Gerdau Ameristeel of Tampa needs to sell shares valued at $1.59 billion to defray the cost of its acquisition of Chaparral Steel of Midlothian, Texas. Parent company Gerdau of Brazil will purchase 73.1 million shares, and an...

Purchasing pros build a strong case for centralizing MRO buying.(Indirect-MRO Group )(Conference news)
November 15, 2007... By Susan Avery Centralizing the MRO buy is an issue long debated in purchasing circles. It resurfaced again during educational sessions and informal networking at the 10th Annual Indirect-MRO Group conference held in Chicago in September....

Business Intelligence.
November 15, 2007... By Susan Avery $3.5B Sonepar's offer to buy Hagemeyer Source: Hagemeyer WHAT IT MEANS: If completed, the deal would create the world's largest electrical distributor. But a counterbid by Rexel is still a possibility. ...

MRO Briefs.(Kaman Industrial Technologies Inc's distribution agreement with Donaldson Company Inc.)(Graybar Electric Company Inc's new distribution facility )(SDE Business Partnering's contract with Loreto Bay Company )(Brief article)
November 15, 2007... By Susan Avery Kaman Industrial Technologies has entered into a distribution agreement with Donaldson Company , a manufacturer of fluid and engine filtration systems and components. Kaman will distribute Donaldson filtration products and...

SmartMRO aligns with certified MBE staffing supplier.(Minority Business Enterprise )(Creative Industrial Solutions )(Brief article)
November 15, 2007... By Susan Avery Smartmro has entered into an alliance with Creative Industrial Solutions (CIS), a certified Minority Business Enterprise (MBE). Both companies are located in Ann Arbor, Mich. SmartMRO provides outsourced supply chain...

Strategies for controlling energy costs.
November 15, 2007... By Paul Teague, Editor in Chief As we go to press (end of October), oil futures are trading at more than $90/barrel. Electricity costs are rising. And forecasters are saying that natural gas could take a big jump next year. It's an...

Medical OEMs see outsourcing as lifesaver.(original equipment manufacturer)
November 15, 2007... By James Carbone Under pressure to cut costs and get to market faster, medical device makers are slowly overcoming their doubts and turning to electronics manufacturing services providers. Medical-equipment manufacturers are...