Consumables
Friday 04. October 2013

Jan Paul van der Velde, Senior Vice President of Procurement, Flint Group provides insight into expected raw material developments during Quarter 3, 2013.

“During 2012 many material prices began to stabilise – albeit at quite high levels.” says 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.”

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