‘Spend growth’ for stainless steel market
SpendEdge, a global procurement market intelligence firm, has announced the release of its Global ‘Stainless Steel Market - Procurement Intelligence Report’.
“The stainless steel market is set to experience an impressive spend growth owing to the exponential demand of the 300 series grade stainless steel among end-user industries that seek to leverage its corrosion resistance property. By 2023, the stainless steel market is expected to reach a value of about US$ 20 billion,” commented the analyst.
“However, according to our experts, extreme dynamism observed in the global stainless steel price structure will increase the risk of buyers exceeding their procurement budget. Factors typical of regions will play major roles in driving the stainless steel price dynamism during the forecast period.”
A majority of suppliers’ manufacturing expense will be contributed by the prices of raw materials such as iron ore, nickel, chromium and molybdenum that are expected to undergo periodic volatility. Invariably, this will reflect on the procurement price in the stainless steel market. The manufacturing of stainless steel entails the adoption of sustainable practices and compliance with pertinent regulations. In doing so, suppliers are incurring major expenditure which will have an inflationary impact on the stainless steel price in the market.
“Such a skyrocketing price can be effectively addressed by gaining actionable insights into the stainless steel strategic sourcing practices that are specific to some of the key regions,” said SpendEdge procurement expert, Tridib Bora.
“It is imperative for buyers to include appropriate price collars into their supplier contracts to offset the high volatility associated with pricing. If the right price bracket is not chosen, buyers might end up paying more. Select suppliers based on the distance of their production facilities and storage and distribution centres from buyers’ manufacturing hubs. This will help buyers gain cost-savings in logistics,” added the company.
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