{"id":61457,"date":"2022-01-19T11:51:18","date_gmt":"2022-01-19T10:51:18","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/rohstoffeinkauf-preissteigerungen-und-materialknappheit\/"},"modified":"2024-09-16T10:22:35","modified_gmt":"2024-09-16T08:22:35","slug":"rohstoffeinkauf-preissteigerungen-und-materialknappheit","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/magazine-08\/price-increase-and-shortage-of-raw-materials\/","title":{"rendered":"Raw Material Studies: Price increases and shortage of materials"},"content":{"rendered":"

Raw Material Study<\/strong> How Much Longer?<\/h2>\n

This year’s Raw Materials Study shows the current dynamics in the raw material markets very clearly: it is dominated by concerns about business results and demand fulfillment. It\u2019s hard to beat the world market, but by using intelligent tools, companies can meet the challenges of price increases and material shortages.<\/strong><\/p><\/div><\/div><\/div>\n

The drastic price rises in nearly every raw material category seem to have taken many companies by surprise. Following the economic downturn caused by the pandemic, most economic experts were expecting there to be a longer crisis and persistently low prices. But global consumption recovered faster and more strongly than expected, with the result that after months of factory closures in many parts of the world and ongoing supply chain turbulence, there are simply not enough materials to meet every requirement.<\/p><\/div>\n

Aluminum, iron and steel, as well as plastics, have become significantly more expensive. Almost half the study participants worry that the price rally isn\u2019t over yet. And 40 percent of those surveyed also expect the same issues when it comes to paper, wood and cellulose products. Most of the participants, however, do not fear any real supply bottlenecks. Wood and paper (29 percent) and plastics (27 percent) were mentioned most frequently.<\/p><\/div><\/div><\/div>
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Download raw material study<\/a><\/p><\/div><\/div><\/div>
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Unpredictable Situation<\/h3>\n

The developments of oil, gas, and coal show how unpredictable the situation actually is at the moment: when we surveyed them in June, only around a quarter of respondents expected cost increases. However, electricity and fuel prices exploded after the summer break, and there are even fears of blackouts over the winter. Some exceptional factors are responsible for this: the Organization of Petroleum Exporting Countries (OPEC), for example, insisted on restricting oil production for a long time. Due to the weather, there was a lack of solar and wind energy, which resulted in more gas and coal being used for electricity production.<\/p><\/div>\n

High fossil fuel prices, in turn, led to several companies in Europe and China halting production because it was simply unprofitable. This could all result in real shortages. In the case of aluminum, for example, this is already becoming apparent.<\/p><\/div><\/div><\/div><\/p>\n

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Transparency More Important Than Ever<\/h4>\n

In view of such great uncertainties, it\u2019s no longer enough to simply talk to your direct suppliers about the current situation. Transparency about raw material markets is imperative along the entire supply chain, if you want to be able to make the right decisions. <\/p>\n

The basis for this is the establishing of a professional risk management system that collects all the relevant information with the help of digital tools and

brings it together in a control tower. For raw materials, these are:<\/p>\n