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[April 2004]
Ceramic Machinery Manufacturers Severely Affected by Steel Emergency
The steel emergency is causing serious concern amongst the Italian ceramic machinery manufacturers. With a more than 30% average increase in the price of ferrous products (steel prices have rocketed by 55% in the space of three months), increased delivery times and a decline in quality, the repercussions for the manufacturing machinery industry are inevitable due to the extensive use of these raw materials in its production process.
"Informed observers are well aware that the problem is of a global scale and that it has largely been caused by the behaviour of China," said Acimac Chairman Franco Stefani. "Given the presence of a rapidly expanding industry and soaring demand, this country can afford to pay higher prices to obtain raw materials in the international marketplace and then hoard them. To make matters worse, China has also been reducing its exports of coke, which further aggravates problems for Italian and European steelworks by disrupting a delicate equilibrium."
Acimac feared that the Italian machinery industry now risked losing competitiveness - not only due to the price of steel but also because of procurement difficulties or, in the worst case scenario, supplies running out entirely.
Acimac Director Paolo Gambuli noted: "The trend in prices of ferrous products certainly does not make things easier for our companies, which are already struggling to overcome a stagnant economic situation. Following the unexpected price increases (between 30% and 100%), the manufacturers of ceramic machinery will in turn be forced to review their price policies, although the higher production costs will certainly not be entirely transferred to prices as the companies will seek to limit increases as much as possible".
ENDS