Managing the risk of product demand

"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.SummaryThe non-ferrous metal industry in the world is suffering its most serious slump since the war. With some of the markets of the advanced industrialized countries approaching saturation point and economized usage of natural resources and substitution growing, the possibility of a quick recovery of the demand for base metals is dim.To cope with the changing product demand Japanese producers have had recourse to such measures as strict inventory control and stockpiling for the purpose of stabilized imports. They have also tried hard for securing raw materials and promoting new field s of demand but the very core of ""risk management"" has been the diversification of line s of business to bolster and stabilize the foundation of management of the non-ferrous metal industry in Japan.To see the demand for nori-ferrous metals recover from the slump and be put on a path of solid development, we have to wait for the economies of the developing countries to ""take off"" and for its realization the economies of the developed countries must be reactivated with new growth industries playing a leading role, and the transfer of technology and money recycling must be carried out smoothly under an orderly international trade system."