The Hanjin bankruptcy is still causing problems in the shipping market. The hopes of a merger with another shipping line or a bailout from the Korean government are dashed and will not happen. Hanjin will liquidate everything and will be a memory in the industry. Containers are still being held with no easy resolution (none of ours). The industry is trying to sort out how to handle the void being left in the market. Shanghai is the hardest hit port at present and getting space on vessels there is difficult and there are long lead times. Other ports are affected but not as much.
With peak season for exports from Asia still having a month to go through end of November and Chinese New Year being early this year January 28th, space is tight and will likely remain tight for many months. Rates are still increasing. In addition to rate increases due to Hanjin bankruptcy a November, 1st General Rate Increase (GRI) is happening and may settle out to a level of about $300 (that’s a speculative amount). You can expect more increases at least through the end of the year.
Copper metal remains range bound. There’s little to push it to the upside however at a four year low we wouldn’t expect much to the downside and the most recent movement has been higher. Add in the fact that as manufacturing picks up in the first quarter copper metal prices tend to rise and it’s a good time to consider Copper Sulfate needs. Lead times can grow on certain grades during the first quarter.
If you’re not buying our core products give them a look. Short lead times and high quality remain our focus on these competitively priced products. Of course our primary product is our branded Copper Sulfate EPA, fertilizer, and industrial grades. We have the most expansive product line in the U.S. for all applications. Our recent addition is a high purity grade. Sodium Sulfide Flake, Potassium Hydroxide Briquettes, Zinc Sulfate, Aluminum Sulfate, Calcium Chloride, Magnesium Chloride, Sodium Formate, and Sodium Nitrite are other key products that we stock for truckload or pallet quantities. Add to them from our complete product list to improve product turnover and cash flow.
We have a new Potassium Hydroxide flake that arrived in September providing a lower cost option. Call for specification and samples.
Late October or early November we have a lower cost Magnesium Sulfate Heptahydrate that we will be offering. We will stock this Epsom Salt for both pallet and truckload requirements.
Copper Sulfate has edged up from the four year low it hit. The price for the copper metal is still trading in a narrow range. Fourth quarter should remain a good time to order Copper Sulfate and also consider looking at December and January needs before the start of 2017 when prices historically move up due to the increases in worldwide manufacturing.
As we enter the fourth quarter managing inventories is a critical cost initiative for most companies. Call Chem One for all your JIT needs and minimize dead stock during this uncertain economic climate.
After many previous monts of decreases, there are no decreases this mont and only one increases:
Sodium Acetate – This is one already impacted by the ocean freight
In observance of Thanksgiving Chem One will be closed Thursday November, 24th and Friday November, 25th. We would like to take this opportunity to wish you and your families a very Happy Thanksgiving.
We are now four weeks into the 2016 Food Facility Registration Biennial Renewal period which began on October 1st and ends on December 31st. Updating your registration with the Food and Drug Administration (FDA) is different than renewing your registration. During the renewal period, you will not see the “Update Facility Registration” button listed on the FFRM main menu, until the registration is renewed. If a registration is not renewed by 11:59 PM on December 31st, the registration will expire and removed from your account. Go to http://www.fda.gov/Food/GuidanceRegulation/FoodFacilityRegistration/default.htm for further info.