Raw material costs rises mean higher prices warns BM Catalysts

Published:  14 September, 2021

Global steel shortages, increasing aluminised and stainless steel prices and in rising commodity costs, are causing pipe price volatility BM Catalysts has warned.

BM Catalysts Commercial Director Mark Blinston commented: “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.”

According to BM Catalysts, aluminised tubes prices are now 62% higher than they were at the beginning of 2021, with the company also being advised of a price increase of over 100% on stainless-steel coil supplies going into 2022.

Mark continued: “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 (which shows no indication of this slowing down); as well as rising nickel prices.”

He added: “The removal of export tax incentives on Asian stainless steel also means prices are now less competitive in the UK and European market, while container shortages are further exacerbating the cost of importing steel from Asia.”

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