Purchasing Hotline

News and analysis for purchasing/supply chain management professionals

By -- Purchasing, 4/5/2001

Consider consolidation of resin grades as a route to major savings in plastics' costs. Deere & Co. expects to cut its polypropylene supply base by a factor of five, yielding more than 10% savings in purchased price and even more in reduced testing and R & D costs. See story on page 18.

Make sure your chlorine and derivative prices are competitive. PVC prices are sagging due to a chlorine glut and weak demand. Integrated producers are apparently moving large quantities of chlorine into PVC due to imbalances in the chlor-alkali market. Spot prices of chlorine have plunged below $100/ton, according to PURCHASING 's latest survey of buyers.

Tap into Web markets for daily updates on market conditions. ChemConnect says that fluctuating energy prices are boosting online commodities trading to record levels. Buyers can gauge market activity on the Commodities Floor and conduct spot trades quickly.

Add value and cut MRO costs at your company. MRO Buying Strategies , a book from PURCHASING Magazine, is the definitive study on the evolution of MRO buying. Outsourcing, procurement cards, and distributor know-how are only a few of the topics the book covers. To get a copy send $35 plus $2.50 for shipping and handling to PURCHASING Magazine, P.O. Box 497, New Town Branch, Boston, MA 02456. Or call (617) 558-4348 to use a credit card.

Hot-rolled steel prices are at 20-year lows, but buyers are rejecting most $40/ton increases proposed for this month. Higher prices aren't expected to stick across the board until demand starts lifting later this year.

The Bush administration is studying ways to help steel producers. Officials may impose high tariffs on imports that exceed levels to be determined. But they also want indications from producers that capacity issues will be addressed.

Expect nuclear power to make a comeback. Almost all new power plants now are gas-powered, putting a major cost squeeze on that fuel. Utilities hope to avert major cost escalation and brownouts by recommissioning nuclear plants and building new, smaller ones based on safer "pebble-bed" reactors.

New York must boost generating capacity 25% within four years to avoid major shortages. Half the capacity is needed in New York City. As much as half of the power now consumed in the state is purchased through risky daily or day-ahead price auctions.

Do in-plant microturbines make sense for you? Check "Exclusive Web Editorial" at www.purchasing.com.

Stay abreast of legal issues by attending "Purchasing and the Law" May 9-11 at Duquesne University in Pittsburgh. The session will be lead by PURCHASING columnist Dr. John Murray. For info on topics covered and fees, call 1-800-283-3853.