Declining Wool Clip
Lanolin is a grease secreted from sheep’s skin and extracted from wool. It is mainly used in cosmetics and to produce vitamin D3. Global wool production has declined by 44% over the last 20 years and represents only 3% of world fibre production. With so many plant-based and synthetic fibres to choose from, there really is no need to take wool from sheep. The increased demand combined with the decreased amount of wool scoured has resulted in high wool lanolin prices. http://www.vegansocietycom/resources/animals/sheep-and-wool.aspx
Guar Market Update
Guar Splits prices moved from $2,725 per MT in mid-Oct 2011 to $19,700 per MT in Mid April 2012. This represents a 620% rise in 6 months. Although the Guar crop for 2011 was almost as per estimates, the rise in prices was attributed to: 1. Continued strong demand from the hydraulic fracturing industry in USA; 2. Stock piling of Guar Seeds and/or Guar Splits and/or Guar Gum powder by some companies both in India and abroad. The current Guar Splits price would have been higher had it not been compensated to some extent by the depreciation of the Indian Rupee, against the US Dollar, in the last few days. http://www.cybercolloids,net/news/guar-market-update-1
U.S. Trucking Trends
Demand for truckload services continued to improve through March. Spot Market rates increased throughout March, as a result of increasing demand and tightening capacity. While many costs are on the rise, particularly fuel and labor, rates have not risen to offset the increases. Industry surveys have many believing sharp rate increases are just around the corner as demand spikes. Truck capacity is still decreasing, yet there is no indication by carriers to increase capacity because of the lack of drivers. As driver shortages continue, expect to see more switching from OTR to Intermodal. http://www.idstransportation.com/news/freight-industry-report-for-march-2012
Personal Care Packaging
The economic crisis and the growth of the emerging markets have sparked a significant change in the personal care packaging market. Consumer trends have changed drastically and suppliers have become increasingly focused on costs. Market conditions have created a situation where consumers are demanding the same level of quality, but at a lower price. Thus, there will be an increase in the sale of higher volume, cheaper ranges and plastic is expected to be the big winner over the next decade. http://www.prnewswire.com/news-releases/the-personal-care-packaging-market-2012-2022-150751685.html
Supply Chain Manager
Essential Ingredients, Inc.