Technology metals market

Technology Metals Market and Procurement Strategies in AEMEA

by CommoditiesMetals & MineralsTechnology

The demand for technology metals has increased exponentially in recent years due to their extensive use in various high-tech applications. Still, the supply of technology metals is limited, and their procurement can be challenging. Here, we will explore the current state of the technology metals market in AEMEA and discuss procurement strategies that can help businesses stay competitive in this dynamic market.

Technology Metals Market in AEMEA

The market for technology metals in Asia, Europe, the Middle East, and Africa (AEMEA) region has been growing steadily over the past few years, driven by several factors, such as the increasing demand for electric vehicles, renewable energy systems, and consumer electronics.

For instance, the demand for lithium-ion batteries, which require large amounts of cobalt, nickel, and lithium, is expected to increase as electric vehicles become more prevalent in the automotive market. Additionally, the demand for rare earth elements, such as neodymium and dysprosium, is growing due to their use in manufacturing wind turbines and other renewable energy systems.

China has been a dominant player in the technology metals market, producing most of the world’s rare earth elements and lithium. However, other countries in AEMEA are starting to ramp up production to meet the growing demand.
Despite the increasing demand for technology metals, the supply chain for these metals is highly complex and often opaque, with several challenges, such as geopolitical risks, price volatility, and environmental concerns.

One of the challenges facing the technology metals market in AEMEA is the supply chain. These metals are often produced in countries with unstable political situations or weak regulatory environments, making it challenging to ensure responsible sourcing practices.

Technology metals market

Procurement Strategies for Technology Metals in AEMEA

To stay competitive, businesses in the technology metals market in AEMEA must adopt procurement strategies to help them manage supply chain risks, reduce costs, and ensure sustainability. Some of the procurement strategies that businesses can adopt include:

  1. Diversify the Supply Chain
    One of the most effective procurement strategies for technology metals is diversifying the supply chain. Businesses should look for multiple suppliers and sources of technology metals. This can help businesses to mitigate the risks associated with supply chain disruptions, price fluctuations, and geopolitical tensions.
  2. Build Strong Relationships with Suppliers
    Building solid relationships with suppliers is crucial for ensuring a reliable supply of technology metals. By building solid relationships with suppliers, businesses can gain access to valuable information about market trends, supply chain risks, and pricing fluctuations. Additionally, strong relationships can lead to better pricing, favourable terms, and priority in allocating supplies.
  3. Conduct Regular Supplier Audits
    Conducting regular supplier audits is another effective procurement strategy for technology metals. By auditing suppliers, businesses can ensure they meet the necessary quality, environmental, and ethical standards. Additionally, audits can help companies to identify potential risks in the supply chain and take proactive measures to mitigate those risks.
  4. Monitor Market Trends and Price Fluctuations
    Monitoring market trends and price fluctuations is crucial for effectively procuring technology metals. Businesses should closely monitor the market trends, supply chain risks, and price fluctuations of technology metals. By staying current on market trends, companies can make informed procurement, pricing, and inventory management decisions.

Conclusion

The technology metals market in AEMEA is rapidly growing. In this dynamic market, businesses need to adopt procurement strategies to help them manage supply chain risks, reduce costs, and ensure sustainability to stay competitive. By following the procurement strategies mentioned above, businesses can ensure they have a reliable supply of technology metals and stay ahead of the competition.

Contact us to learn more about procurement strategies that allow your business to maintain steady supplies of technology metals and stay ahead of the competition.

China

Copper price sliding into 2023 amid rising Covid-19 in China

by ChinaCommoditiesCopper

Copper prices slipped into 2023 as a result of rising coronavirus cases in China, fears of an impending global recession led by the Russian military operation in Ukraine, high energy prices, and rising inflation, weakening demand and pressuring the world’s top consumer of industrial metals to tighten control measures that will disrupt supply and demand and impact the global economy.

“With Chinese stimulus starting to falter and COVID-19 resurgences triggering the possibility of more disruption, particularly across Asia,” analysts Eric Nguyen and Pranay Pathak said. “This volatility will only be exacerbated given the large amount of money flowing into commodity ETFs,” which has added around 1 billion pounds ($1.36 billion) a week during the past two months.

Analysts have said that the recent spate of positive case releases and signs that the economy is stabilizing have led to a “somewhat optimistic” outlook for copper. However, they warned that recent reports suggesting increased restrictions on logistics and travel within China could lead to further disruptions in supply chains. Following a two-year shutdown, the country is set to reopen on January 8, removing the required inbound quarantine for foreign travelers ahead of the upcoming Lunar New Year holiday.

Despite the year-end focus on First Quantum Minerals and the Panamanian government’s tax dispute, as well as a ransomware attack on Vancouver-based Copper Mountain Mining Corp after it announced the sale of its Australian exploration project, demand for energy transition commodities remains stable.

The market’s focus on near-term economic forecasts indicates a possible rebound in the midterm of 2023. The long-term outlook for copper remains strong as the world continues to shift towards greener and more sustainable energy sources.