“By sourcing the billets from A-Rank, LB Aluminium would be able to enjoy a stable and competitive supply of raw materials, not to mention better pricing. As for A-Rank, becoming an upstream supplier to LB Aluminium means it would gain a steady customer that makes regular orders,” he explains.
A steel analyst says vertical integration gives the downstream company, in this case LB Aluminium, the ability to minimise its supply chain risk.
“Expanding vertically could prevent disruptions in the supply of input materials and reduce threats from suppliers, especially those with greater bargaining power,” he adds
yeah..trader tend to see short term..of course there might be more consolidation..trader will get frust, sell out, n go somewhere else..but for mid to long term, the uptrend is there..
arank vs lbalum remind me the scenario of cscsteel vs ssteel. one is upstream and anothwr one is downstream. i remember last Q cscsteel heading to south and ssteel heading to nor5h.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
isaac225
371 posts
Posted by isaac225 > 2017-03-30 10:24 | Report Abuse
just bought some at 0.72 and keep for mid term to see where it can go ..