Having timely access to new commodity market information is critical. The market adjusts quickly, so new information can dramatically change a forecast. A fundamental analysis provides a wide range of information necessary to understand the basics of a commodity’s market, including key underlying factors affecting supply and demand.
Kairos Commodities provides online access to market analysis of a wide range of commodities. The analyses contains a thorough study of production and consumption statistics, as well as an overview of activity in the primary sectors that are consuming each commodity. Additionally Kairos Commodities analyzes the supply/demand balance, inventories, cost drivers, volatility, speculation and price seasonality. All analyses presents a global overview of market trends, while providing regional information where useful. The analyses are tied together through a regression that studies whether the current price level reflects the fundamental market factors. Additionally, Kairos Commodities provides regional price comparisons and access to relevant global news sources.
Making wrong decisions in commodity purchases can cut into profit margins, reduce cash flows, and damage relationships with suppliers and customers. Understanding commodity markets enable organizations to make better decisions on the timing and amounts of purchases and improve preparation for negotiations with suppliers and customers. Additionally, clients enjoy unparalleled cost saving opportunities – in many companies in the area of 5-15% of the total commodity purchase.
A closer look at the metal market
Commodity markets are, to a certain extent, interrelated and knowledge about events in one market is therefore often relevant for another market. At Kairos Commodities we monitor a wide array of commodity markets and also systematically analyse the various relationships. This article analyzes the dynamics of the metal markets.