Managing the risk of product demand
CIM Bulletin, Vol. 76, No. 858, 1983
AKIRA FUJISAKI, President, Sumitomo Metal Mining Co., Ltd. Tokyo, Japan
The oil crisis accelerated the change of non-ferrous metals' demand structure. Maturing societies in developed countries and preference for lighter, thinner and smaller products are eroding the non-ferrous metal industries' growth potential. Inventory-control, stockpiling and developing new demand are measures Japanese smelters have taken to cope with the changing demand.
The most effective means for risk management of product demand lies in the cooperation between ore producing countries and metal consuming developed countries to assist developing countries in their efforts to "take-off", which in turn will bring about a surge of demand for metals.
Risk management, Mineral economics, Product demand, Diversification, Copper, Lead, Zinc, Nickel, Aluminum, Sumitomo Metal Mining Company, Japan