| dc.description.abstract | Copper is used in many industrial applications. Due to the strong growth of the economic development in the emerging markets, the demand for copper was continuously increasing and this was driving up the price. For example in March 2008 the average copper price was at US $8439 per ton, only 9 months later the price dropped to US $3000 per ton. In 31 August 2011 copper price of US $ 9100.5 per ton, but the September 28 copper price the European debt crisis and weak demand continent to below US $ 6975 per ton. The upper and lower amplitude in a month nearly 30%, resulting in a miscarriage of justice business price risk costs in the procurement of raw materials.
In this study, for copper metal, a detailed study of factors that influence the use of positive and negative relationship between international prices of LME price, LME inventory, gold price, oil prices, the US industrial production index and copper, the establishment of copper procurement policy, we can see that: obvious price fluctuations up or down, the next procurement effect will be more obvious. If we know the price trend was down, we can increase the number of orders to reduce costs; the trend of rising prices, we have to reduce the risk of dispersion number of orders.
Purchasing department understand the current situation through relevant indicators of the international economic situation, provide the basis for judging changes in copper prices. Use of procurement strategy to reduce procurement costs, increase corporate profit. | en_US |