2020 has been a volatile year for downstream supply markets, and several key cost categories have moved sharply. For example, since last January,
- Hot-Rolled Coil Steel costs have increased by 40%+
- Copper costs have increased by 16%+
- Organic Basic Chemicals costs have decreased by 4%+
As operators refine their CapEx and OpEx programs for 2021, we have found that it is important to understand both how key downstream commodities have trended, and the impacts of those trends on key cost categories – for example, the 16%+ increase in copper costs contributed to a 7%+ increase in Electrical Supplies.