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• Lead: the average price per tonne of lead on the LME
reached USD 2,062 (Euro 1,603) in 2012, down 14% in USD
and 7% in Euro on the prior year.
• Oil: the year 2012 was marked by considerable price
volatility, especially in the first half, with prices ranging
between USD 89 and USD 128. The average price per barrel
of Brent crude was USD 112 in 2012, basically stable on USD
111 in the prior year. In contrast, prices in Euro increased by
9%, from Euro 80/barrel in 2011 to Euro 87/barrel in 2012,
causing ethylene prices to rise by around 9%. As a result,
even the principal petroleum derivatives reported higher
prices than the previous year, with an adverse impact on
overall variable costs.
Even in 2012, the Prysmian Group was able to cope with these
fluctuations in Base Metals thanks to the strict application
of its hedging policies and through a daily matching between
purchase and sales commitments. Sales price adjustment
mechanisms, combined with careful hedging, helped mitigate
the impact of price fluctuations on the income statement.
As for the other raw materials, all the major contracts were
revised not only to benefit from the new volumes generated
by the integration of Draka but also to introduce purchasing
solutions that reduce the risks of volatility in commodity
prices that are tied to market indices. In addition, constant
monitoring of global supplies and the introduction of various
measures to optimise costs have contributed to completing
the integration of Draka’s procurement processes with
those of Prysmian, along with continued rationalisation of
the supplier base and purchasing portfolio. The Group has
achieved synergies of scale thanks to its increased size and
consequently greater bargaining power with suppliers. Lastly,
during the year the Prysmian Group further consolidated its
commercial relationships with key suppliers, managing to
minimise costs and avoid any disruption in supplies in order to
secure both short and long-term benefits for the Group.
