Purchasing

Energy demand remains huge and growing
With the manufacturing and housing outlooks softening, analysts may have to lower energy demand expectations this year,” suggests senior analyst Phil Flynn at Alaron Trading in Chicago. But, he notes, demand’s apparent inelasticity to higher prices is confounding economists and total energy demand still will be huge. In fact, U.S. supply usually must meet demand of 99.5 quadrillion British thermal units annually.

• Energy prices to drop slightly in 2007
• Demand for chemicals will slow in 2007
• Chemical prices will stabilize due to market slowdown
• DRAM supply will be tight while other components will be adequate
• Prices for most electronic components will fall in 2007
• Supply of copper, steel and aluminum in surplus
• Metals prices will drop 10% this year
• 2007: What to look for
• Look closely before buying primary metal products offshore
• Inventory Control: Treat the cause, not the symptom

Chemicals Web Exclusive Buyers looking into natural ingredients to reduce costs Chemicals Edition Business Intelligence - Demand for styrene; molded plastic prices Chemforecast More capacity and competition should keep surfactant prices down in 2007 Consumer Industry Buying GSK’s consumer unit leverages technology in global sourcing Electronics and Technology Edition Electronics Leadtimes Leadtimes roll back Electronics Trends New Avnet division focuses on small orders Chip capital spending rises Business Intelligence - Business condition; purchase orders; semiconductor prices It's not just about SMT anymore Vista will mean higher BOM cost Digi-Key inks new agreements Cell phones boost image sensor demand Arrow looks to India for growth Manufacturing moves to Chennai

Metals Business Intelligence - Nonferrous cost dip; gain in stainless steel output Metals Chips Aluminum Statoil deal will spin Hydro into a major supplier Commodities In 2006, even the lows were high Copper Speculators bet on long-term inflation Galvanized Steel U.S. trade panel ends tariffs on imports of coated sheet Low-Cost Country Sourcing Look closely before buying primary metal products offshore Scrap Smorgon buys Maine processor Service Centers Reliance Steel buys Encore of Canada Steel Mexico’s steel consumption seen soaring Lone Star to build large-diameter pipe mill Innovative micro mill for rebarset for the Phoenix area Chinese ministers want firms to boost high-valued exports Zinc Price inflation won't be dulled News and Departments Economy + Supply Tooling spend picks up in early 2007 3Q GDP slows TTI Acquired Butadiene demand to drop India will be big chipmaker IP sells off two units Port security Will cost Logistics Business Intelligence - Average ground increase; overcapacity in truckload market Logistics market will give buyers a breather in 2007 Arrow Electronics gains visibility through freight payment data MRO + Distribution Business Intelligence - Highest average salary; strong sales in 2007 2007 brings lower prices, and innovations from distributors My Turn And now, from our Commodities Council... Office Business Intelligence - Office equipment revenues; testing Windows Vista Equipment more affordable, supply prices will be volatile Prices Energy, machinery remain top buyer concerns Producer price index soars Housing DRAGS copper tags Coking coal prices may drop SDRAM tags fall Silver hits Kodak Iron ore contracts set Rubber will bounce back Natgas up on capacity Rail rates will roll Further chip price erosion Dow hikes PE prices Acetic acid prices may stay up Scale Up: Big Ideas in the Middle Market Supply chain management is key to meeting requirements of demanding customers Trends Business Intelligence - Business condition; Aberdeen CPO agenda Team-based buying strategytakes off in indirect materials Tier-one auto supplier targets low-cost regions Your Turn Copper quality quandaries