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In the news Commodities and Logistics
#1
Bloomberg -

Surging prices of the raw materials needed for your refrigerators, automobiles, window frames and plumbing show no signs of abating as America’s supply-chain crisis spills into another year. John Gillespie is seeing the issues continue to mount across the country. The commodity manager for Superior Essex helps supply a large chunk of the metal wiring that electrifies U.S. homes and power grids and said the shipping and logistics charges for copper and aluminum are the most significant increase as part of the all-in cost.

Ongoing pandemic-triggered snarls are boosting the cost of trucks and rail cars to move things around, causing delays in shipping materials to consumers. Manufacturers of products are paying a record price to get hold of copper and aluminum.

"Boats are stuck out at sea and rail doesn’t have enough staff, so rail yards are crowded and my material is stuck behind 1,500 cars so they have to dig that out and it takes days to do that. The perfect storm is having a ripple effect and people are calling for metal, but the material is just not there.” - John Gillespie (commodity manager for Superior Essex, one of the nation’s largest suppliers of wiring)


- Scoot


It is not the profit margin of the past but those of the future that are basically important to the investor.” Higher inflation raises a company’s expenses and, coupled with competition,  will compress profit margins. Eyes have to be on how a company’s strategy will  reduce costs and improve profit margins over the long term. - ― Philip A. Fisher
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#2
I read a story a while back indicating the California unions were preventing modernization of the docks as they didn’t want to lose jobs to automation. Thought it was interesting and just one more reason Americans are getting screwed with high prices and lack of finished goods.

Wire is crazy expensive, realized this when I hooked up my electric garage heater last Fall.


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#3
Commodities are a good investment choice during inflation. If all my cash wasn't in stocks I'd sure be looking at ag. The problem is high volatility and premiums for options. I received an alert for this a little while back from a company that says it's addressing the cost. Conceptually interesting. Haven't dug into it - again, no cash and doing different things anyway.

https://www.cmegroup.com/markets/agricul...tions.html
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#4
(02-07-2022, 11:11 PM)bankerboy Wrote: I read a story a while back indicating the California unions were preventing modernization of the docks as they didn’t want to lose jobs to automation. Thought it was interesting and just one more reason Americans are getting screwed with high prices and lack of finished goods.

Wire is crazy expensive, realized this when I hooked up my electric garage heater last Fall.


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That was about the time we couldn't get electrical wire at HD. The problem was the insulation though. No plastic conduit either.  Hurricane and Covid messing with US producers near the gulf.  This has been the perfect storm for supply chain failures.
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