Brightspot offers price projections for raw and intermediate materials. Our assessment of future price developments of these substances helps our clients improve the timing of their purchasing decisions, their price risk management as well as their business and strategic planning.

Our work is relevant to a wide variety of industrial corporations that produce, process or trade raw materials (including energy) and/or intermediate substances. These may be primary (new) or secondary (recycled) materials of various origins, like metals, chemicals, energies, agricultural (food and non-food) or industrial commodities. What our clients all have in common is that they are looking for an instrument to improve their grip on the volatility of prices in their raw material markets, or when selling their own output.

Are some of these statements true for your company?

Below we give some examples of industries that might benefit from our work. Obviously many more of these examples could be given.

As a steel producer you are using large quantities of expensive alloys to produce your special steels exactly to the specifications of your customers. Although there exist mechanisms in your industry to transfer changing input costs to your clients, your competitive environment may demand that you swallow some of these changes yourself. Understanding where prices for key-alloys are within their long-term cycles may assist you in improving the timing of buying your feedstocks. A better margin on your final product may be a welcome benefit.

As a side effect of your production process, metal scrap arises as a valuable secondary product. You are an automotive stamping plant processing huge amounts of sheet coils, or a printing house using aluminium litho sheets to print journals and magazines. Recycling these valuable secondary commodities, aka metal scrap, results in additional income, and a reduction of your input costs. Your scrap broker may efficiently remove these waste materials from your premises to sell them at the going rate to any client that needs the material at that time. Having a deeper insight to where prices may be rising over the next two quarters could make you decide to hold on to your scrap for a few extra months and see its revenue improve significantly.

Your company is manufacturing decorative paints. It is exposed to price fluctuations for many of its feedstocks, from binders like acrylics or polyurethanes to fillers like titanium oxide, and to pigments and packaging materials. Rising input costs and down trading to cheaper products by your customers may squeeze your margins. Knowing for what price levels your input costs are heading by when may help you make the appropriate business decisions.

You are trading nitrogen-based fertilizers like ammonium nitrate and urea. Ever growing world food and feed demand suggests continuously rising prices, not only for grains but for these fertilizers as well. And yet, prices for these substances turn out to be cyclical as much as they are for any other commodity. Knowing when to expect a major trend change may save you quite a bundle, and having a second opinion in addition to your own market experience may be not too much of a luxury to afford.

As a manufacturer of personal care products various vegetable oils are important ingredients to your production process. Many of these oils are traded in US dollars, but sometimes local currencies prevail. Prices in these denominations may well be converted to Euro's, Dollars, Pounds or any other currency relevant to you. This will allow a clear perspective on prices, be it in Malaysian Ringgits, Brazilian Reals, Indian Rupees or in US Dollars. And this may greatly enhance your comfort when deciding about your purchasing conditions.

Macro economic indices and business sentiment indicators are relevant parameters to your business. These too appear to respond to the laws of ebb and flood. The IFO Index for the Business Climate in Germany is an example of a sentiment indicator whose time series may be interpreted with our method. Its value can be regarded as a 'price' and it behaves similarly like raw materials and financial values. Knowing where it is bound to go next may help you in assessing the future for your business environment correctly.

As a client you are likely to be successful working with us if…

You are open minded and receptive to new and unconventional approaches, and you are interested to learn about new perspectives that may help you improve your business results. You see the value of having a second opinion on future price development of your raw materials and/or your production output and you want to actively manage the related risks. Another important quality enhancing the result of our work is a willingness on the part of our clients to make a joint effort of exploring how best to implement the insights we provide into their decision-making. Having a dialogue based on your feedback will help us to supply you with the most relevant information to answer your specific needs.