How does the Price Volatility of Non Ferrous Metals Impact Businesses?

Fluctuating commodity prices can have a tremendous impact on the cash flows and earnings of companies. The non-ferrous metals, including aluminium price, have suffered a lot this year. Over the past few years, the price level has fluctuated by 30%, which indicates high volatility in 2021 and beyond. Many factors have caused the price to show major fluctuations. The question is whether the controversy has now dissipated and how the price will develop in the rest of this year. Besides, economic conditions, political and social situations play a major role in determining prices on aluminium by directly impacting supply and demand. 

Is Price Fluctuations of Non-Ferrous Metals a Challenge for Manufacturers?

Consequently, aluminium price and other non-ferrous metals pricing remain the top overall concern for manufacturers worldwide. Today, manufacturers are extremely anxious about pricing fluctuations in the non-ferrous market. It is majorly because there is a huge fluctuation in the prices from the time they procure non-ferrous metals and sell the finished goods to the end-users. 

So, to gain market share or remain competitive, manufacturers have to adapt to the unstable price of aluminium. If a given raw material price increases, the percentage of finished goods has to be updated and reduced in favor of a cheaper ingredient. Even replacing the ingredient has to be considered. 

The uncertainty in aluminium pricing trends means that nearly eight out of ten companies now negotiate fixed-price agreements with their suppliers at high mark-ups on the spot price. In parallel, the duration of these price agreements is becoming progressively shorter, providing less predictability.

Smart Procurement for SMEs with OfBusiness

With OfBusiness, manufacturers no longer need to worry about the fluctuating prices of non-ferrous metals in today’s competitive marketplace. We offer smart procurement for SMEs through our MoU(memorandum of understanding) with NALCO and other big players. Nearly 200+ clients trust us for procurement of Non-Ferrous Metals, especially the Aluminium at the best price. And, in just the Non-Ferrous metals category, including Aluminium, Copper, and Zinc, we have dispatched 20,000MT of raw material in this year till now.

At OfBusiness, we understand the struggles of non-ferrous metal manufacturers with regard to price fluctuations in raw materials, like steel, aluminium, and others. Therefore, we provide guaranteed fulfillment of raw material at the fixed rate agreed with us. Non-ferrous metals manufacturers no longer have to keep checking the price changes happening in the market. We assure to offer non-ferrous metals at the best industry rate.

Being in the market for the past few years, we understand all struggles faced by non-ferrous metal manufacturers and have the best solution for all hurdles. Also, manufacturers can make use of our credit line to procure raw materials of their choice. Therefore, no more financial struggles will hold manufacturers back from procuring raw materials for business continuity. In the non-ferrous category, we supply Primary Aluminium (Ingots, Wire Rods, and Rolled Products), Zinc, Copper, and many more products.