The price of iron, stainless steel and aluminium rises almost daily: a few tips for dealing with this situation

Unfortunately, rising raw material prices are the order of the day: the media, professionals and trade associations have been talking about this issue with concern for months.

The companies that produce and process these materials can only cope with this uncertainty by remaining flexible: prices change almost daily; sellers have the difficult task of explaining the situation to their customers and must indicate the extent to which increases in raw materials, energy and transportation will affect the final price of their products.

The ultimate goal remains not to upset customers, who are no doubt watching these ongoing price increases with great concern.

A brief overview of price increases
Prices have skyrocketed during the pandemic emergency as early as 2020 and appear to have stopped slightly in the second half of 2021.

At the end of 2021, raw material costs rise again, gradually increasing as 2022 begins: in the new year, some materials in particular reach worrying peaks.

In this regard, the decree of the Ministry of Infrastructure and Sustainable Transport (Mims) of April 4, 2022, published in the Official Gazette No. 110 of May 12, 2022, on the “study of the percentage change of more than 8% in the second half of 2021 generated compared to the average price of 2020, the individual prices of the most important construction materials”.

According to the table of Mims, which is considered the official reference for the compensation of companies that have signed contracts, the price increase seems to be particularly large.

Among the different materials used in construction, steel for various processes reached a worrying peak, followed by wood, copper, etc. Here are some examples.

Steel strip used for barricades rose 113%.
Corten steel sheets were 84%.
Galvanized steel for guttering (eaves, downspouts and related accessories) was 86%.
Copper cable 44%.
Copper profiles for guttering (eaves, downspouts and related fittings) and plates were 37%.
Iron-round steel for concrete is 72%.
The conflict in Ukraine and the political tensions that have arisen will only make it more difficult for the industry; the Assolombardia research center noted a few weeks after the outbreak of the war that the prices of all raw materials have increased compared to February 2022.

How to deal with this situation?
There is no denying it: these figures are causing concern for all players in the supply chain, from production to the final customer. But what specifically can be done beyond concern to try to minimize the problem?

Here are some simple tips.

Be flexible
Flexibility has never been more important: accept that estimates may change from one day to the next; thanks to the statistics we now have, it is also possible to forecast the final indicative price of raw materials to avoid being unprepared.

Planning the work
Not only prices are rising, but also delivery times: the high demand for materials also affects delivery times; in this case, the method to follow is to plan the work accurately and to anticipate orders as much as possible. It should also be kept in mind that the more complex the order, the longer the production time.

Don’t trust false promises
If, among the various suppliers you contact, one in particular promises you short delivery times and low prices (well below average), be very careful. Price escalation affects the entire supply chain and no one is exempt.

Rely on an experienced supplier
This is perhaps the most important point: given this worrisome situation, it is important to identify an experienced supplier who can understand your needs and then translate them into the products you need. A transparent supplier will be able to incentivize price increases for a given offer, with a clear understanding of the impact of raw material costs on the final product. They will also be able to be honest with you about actual delivery times (remember, in many cases this is not dependent on the company you are dealing with, but on the wider supply chain).
Tisco steel is a company with over 50 years of experience, and as such can support you through all stages of your order, from design to delivery, coming up with the best solutions for the working process.

With this in mind, Tisco steel has created the ProjectLAM service to meet the needs of all its customers.