Jan Paul van der Velde, senior vice president of procurement, Flint Group, provides insight into expected raw material developments during Quarter 3, 2013.
Jan van der Velde, Senior Vice President of Procurement, Flint Group09.26.13
“During 2012 many material prices began to stabilise – albeit at quite high levels.” said Jan Paul van der Velde, SVP procurement of Flint Group. “The general consensus within the market at the time was that raw material costs would come down. This was in some part based on the economic outlook but also on the back of expected lower crude prices. All of these expectations were built on sound logic, lower economic growth = less demand and this reduction to demand would in turn bring a relaxation in price. Another perception that helped shape this opinion, was the belief that global supply of crude would grow due to the increase in output of shale gas and oil and that the anticipated reduced demand (due to the economy) would lead to a significant correction of crude prices.”
“The reality is significantly more complex than many people had first anticipated. Against all logic crude actually went up, even worse, WTI¬-the US crude base, increased even
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