Commodity Cycle & Supply Chain
"Elephants don't change directions very often, but when they do, it takes a lot to make them turn back again". Commodities have a lot in parallel to that. History exhibits that commodity cycles don't change very fast but when they change the direction its a multi year phenomenon with probably some hiccups on the way. Supply Chains from various industrial sectors will need to align themselves differently. The alignment & much needed adjustment with the commodity super-cycle is a function of multiple things. a. Commodity cost contribution to the overall Supply Chain cost - While many believe that Steel price increases would hurt badly, its not true for all equally. e.g. A Supply Chain analyst may believe that in case of Ship building industry the steep increases in steel prices would hurt. I was listening to the CMD of Garden Reach Ship Builders & Engineers, where he said that steel co