Raw material prices escalate
Global supply and demands issues are causing prices of raw materials such as stainless steel and aluminium soar.
This is according to BM Catalysts, UK manufacturer of catalytic converters, DPFs and front pipes, which has seen the costs of aluminised tubes rise 62% since the start of the year. The manufacturer also being warned of a price increase of over 100% on its stainless-steel coil supplies going into 2022.
This is partly down to various steel market pressures including UK base price increases, an increase in price of ferrochrome, an alloy used in the production of stainless steel, as well as rising nickel prices.
Mark Blinston, BM Catalysts Commercial director, said: “One of the main issues at play is demand and supply, as many steel mills closed or significantly reduced their output during the early days of the coronavirus pandemic. Surging demand since then has put pressure on the ability to keep up, which naturally leads to supply shortages and rising costs. It’s a similar situation to the increased prices of building materials we’ve seen in the news in recent months.”
