The raw materials industry is still under significant stress. Market demand is high, and constrained supply has kept material prices at levels never seen before in the US and global markets. Moreover, the turmoil in Ukraine has complicated an already challenging situation.
The following are essential considerations in keeping material prices high:
The market should emphasize that raw material scarcity and price hikes are not exclusive to the composites industry.
These elements continue to impact significant parts of the composites business, timber industry, aggregate industry, plastics industry, and chemicals sector, to mention a few.
Long-term outcomes are challenging to forecast. However, sources indicate that raw material costs will stay high until at least early Q3 2022, and global shipping and transportation concerns may not resolve until 2023.
Similarly, the RMPI (Raw Materials Price Index) fell 0.1% month over month in June but grew 32.4% year over year.
Release date: 2022-07-20
Metal ore concentrates, and scrap prices (-4.1%) fell for the third month. Monthly metal waste and scrap costs declined 9.5%, while nickel ores and concentrates dipped 4.1%.
Rapeseed oil prices fell 11.6% in June, the most extensive monthly loss since October 2008 (-13.3%). However, prices were 28.4% higher year on year compared to June 2021. Market predictions impacted lower rapeseed oil prices that the domestic supply constraint will ease. From June 1 to June 30, the November futures contract price plummeted nearly 17%.
Considering all the stats for 2021, we can speculate that the trend will continue to progress. However, the only thing we can learn from such tendencies is the resilient need for planning and resourcing the materials.