The currently extremely tense situation on the raw materials markets is also creating increasing challenges for us. Up to now, only individual raw materials and purchased parts have been impacted by price increases, supply shortages and significantly increasing restocking times, but this development is now affecting a large proportion of our raw materials portfolio.
The main reason for this circumstance is the persistently high demand for raw materials in combination with the logistics capacities that are still not sufficiently available. Unpredictable events, such as the delays in the Suez Canal, are aggravating the already tense situation in the markets. We are meanwhile receiving more and more force majeure notifications from our suppliers, who are reporting a lack of raw materials. Plastics are particularly affected by this. This leads to further unavoidable delays in the supply chain. In addition, many different industries are currently competing massively for the available raw materials and goods. The strong global demand is causing a growing supply shortage in Europe. At present, it is impossible to predict when this situation will improve.
By planning ahead, long-term blanket orders with our suppliers and large storage capacities, W+W Aufzugkomponenten is still a reliable partner for you even under these general conditions. For several weeks now, some suppliers are not keeping to the given delivery dates. In particular, the deliveries of the hot galvanised sheets are delayed by several weeks, in some cases even months. After the outbreak of the pandemic, the demand for steel collapsed in 2020 because of the unclear situation. Due to short-time work and factory closures, production was also reduced. Since the beginning of the year, demand in Europe has been significantly increasing again. However, manufacturers cannot resume production so quickly. In the past months, this led to price increases of far more than 100%, depending on the type of steel. In the hope of a short-term normalisation of the cost situation, we have been carrying the additional costs alone up to now. But now we can no longer avoid passing on the increased raw material prices.
As of 5 July, a new price list will therefore apply. The price adjustment will at first only affect articles with a high steel, aluminium and plastic proportion. We would like to explicitly point out that this is a temporary measure. In the event that prices drop again, we will consider this of course.
GmbH u. Co. KG