Metals buyers should always be looking for every possible edge to manage their spend, particularly amid volatile times (like we’ve seen this year).
In the MetalMiner 2021 Forecasting Workshop, held virtually this year, attendees will:
- Hear from MetalMiner experts on short- and long-term metals outlooks
- Beta test MetalMiner’s should-cost models
- Gain valuable insights vis-à-vis metals spend strategies for the next year
Sign up for the MetalMiner 2021 Forecasting Workshop
The MetalMiner 2021 Forecasting Workshop is scheduled for 10 a.m.-1 p.m. (CDT), Thursday, Aug. 13.
MetalMiner Founder and CEO Lisa Reisman and Senior Forecast Analyst Maria Rosa Gobitz will kick off the workshop with a short-term metals forecast.
“Manage the volatility, manage the volatility,” Reisman said. “Seriously, companies should model a market with more volatile prices and then carefully select the appropriate contracting mechanism.”
The insights are particularly valuable this year, as volatility grips both metals and metals-adjacent markets. Reisman and Gobitz will go into further detail about the factors buyers should be monitoring.
Included among those factors are the U.S. dollar, which recently touched a two-year low, and oil prices. Oil prices represent a large percentage of the CRB index and commodities as a whole, Reisman notes. As such, oil prices are a market-driving factor buyers should monitor closely.
With respect to steel, buyers should continue to keep abreast of news regarding capacity restarts.
“If things come on too quickly, prices will continue to fall,” Reisman notes. “But if demand increases faster than supply, buying organizations will see more price volatility.”
Beta test MetalMiner’s steel and aluminum “should-cost” models
Participants in the virtual workshop will also get the chance to beta test MetalMiner’s steel and aluminum should-cost models.
So, why should buyers incorporate should-cost models into their spend strategy?
“For the most part, the way companies currently gain an understanding of the ‘current market price’ is a combination of taking their spend out to bid and/or using their own tools and prior price history to determine an expected bid price,” Reisman said.
“What most people miss without a should-cost model are the adders and extras, which contain a lot of ‘margin padding.’ With the aid of a should-cost model, prior price history and a formal bid process, buying organizations can help guide the negotiation into expected price ranges and/or identify hidden costs and opportunities for sharper negotiations.”
In addition, participants will hear from Don Hauser, MetalMiner’s vice president of business solutions, and MetalMiner Co-founder Stuart Burns, about how to set steel and aluminum buying strategies.
Participants will also have the opportunity to network with metal-buying peers and discussed challenges and potential strategies.