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The uptrend in the cost of raw materials continued, especially iron coil (235JR), where the entire engineering sector is having a very difficult time. For example, material like stainless steel 304 (stainless steel useful for dished heads for pipes, dished heads for stainless steel, etc.) has increased in cost by around 50% (1.9 €/kg in September, today at around 3 €/kg), while carbon steel in some cases is close to 1.5 €/kg.
It is a situation that has alarmed the entire steel sector: the greatest difficulty in this period is the “metabolisation” of these increases towards customers who treat the products as commodities not subject to fluctuations in market values.
In a semi-finished product such as stainless steel dished ends, for example, it is normal for the price of the material to account for around 40% of its value, and it is the responsibility of the sales department to inform customers of the general situation first and second, to protect company margins from increases in raw materials.
Last December we talked about the subject, read the article here: https://tommasinfondi.it/en/raw-materials-price-increase-of-stainless-steel-dished-heads/, but the situation does not seem to have changed at all.
Tommasin gives a lot of attention to this context, and using analytical control and management systems it is able to correctly calculate sales offers in relation to raw material prices. But when will there be an end to the increases in raw materials used, for example, in the realisation of stainless steel dished heads?
As Singer Lucio Battisti used to sing, ‘we will only find out by living’.