LONDON--(BUSINESS WIRE)--SpendEdge, a global procurement market intelligence firm, has announced the release of its Global Iron Ore Market - Procurement Intelligence Report.
A consolidated supply market will severely eschew the bargaining liberty of buyers in the iron ore market. This will render procurement costly and complex in the iron ore market. The steel industry will be plagued with severe fluctuations in its demand and supply ratio which is an aftermath of the heightened political strife between the key economies. On account of being one of the principal consumers, these demand and supply fluctuations in the steel industry will have direct impacts on the price structure of the iron ore market. This will prevail as one of the dominant iron ore price trends during the forecast period.
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Amidst this price dynamism, the iron ore market is expected to witness a spend growth of over USD 20 billion in the years to come. The steady increase in the demand for steel from the construction and heavy equipment manufacturing industries will be one of the key factors that will drive the spend growth in the iron ore market.
What are the iron ore price trends that are driving the overall price structure in the global iron ore market?
- Meteorological factors and mining incidents that occurred in some of the key iron ore producing regions have created a major lacuna in the global inventory of iron ores. Consequently, this increased iron ores prices. However, the volatility in the demand for steel has resulted in a decline in the iron ore prices.
- The rise in fuel costs will increase the operating cost of freight service providers. These service providers will also be affected by a decrease in the availability of labor (such as truck drivers), particularly in regions such as North America and Europe, in turn, requiring them to increase the wages of their employees.
Download the free sample of this report to know what the key category management objectives that you must adopt to address the price dynamism in the iron ores market.
What are the scopes of optimizing procurement spend with these upward rising iron ore price trends?
Optimizing procurement spend does not stop at getting the product from suppliers at reduced rates. Most of the buyers in the iron ores market fail to realize that adequate supplier relationship management is crucial to create avenues to save costs in the long run and also to facilitate effective category management in a market that is characterized by price and demand dynamism.
Adopt a regional sourcing model
With the iron ore price trends in mind, buyers must adopt a regional sourcing model. This will benefit the buyers with reduced logistics expenses, ensure vicinity with iron ore suppliers’ facilities, and open access to regional suppliers with better awareness of regional laws and regulations.
Identify iron ore suppliers that provide assistance in demand and price forecasting
Considering the fact that the iron ore market will be characterized by demand dynamism, it is prudent of buyers to partner with iron ore suppliers who are known to adopt advanced analytical tools to accurately forecast prices and demand for iron ore for the duration of the contract. This will benefit the buyers with optimization of procurement timing and costs, minimization of inventory and lower inventory holding expense, and better planning of delivery timelines.
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Some of the key topics covered in this report are:
- Iron ore market spend segmentation by region
- Total cost of ownership analysis in the iron ore market
- Regional spend opportunity for iron ore suppliers
- Iron ore suppliers cost structure
- Iron ore suppliers selection criteria
- Iron ore suppliers under coverage
- Procurement best practices
- Category management objectives
- Cost saving opportunities in the iron ore market
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