RHI Magnesita Announces Global Price Increase
As a consequence of the persistent increase in operating, raw materials, manufacturing, environmental, and regulatory costs, RHI Magnesita has introduced a 5% price increase for its portfolio.
RHI Magnesita recently announced a global price increase for its products and solutions across both the steel and industrial divisions. As a consequence of the persistent increase in operating, raw materials, manufacturing, environmental, and regulatory costs, RHI Magnesita has introduced a 5% price increase for its portfolio. This increase has been applied to the whole product spectrum worldwide, including basic (magnesia and dolomite based) and non-basic products, varying in a range of 3-20%.
“To support investment in technology, environmental solutions, regulatory demands and the production infrastructure necessary to serve our clients, we are adjusting our prices to sustainable levels,” said Gustavo Franco, chief sales officer. “This will fully reflect the value of our investments in backward integration as well as our intense service-based model and is paramount to maintain our position in the long-term as the most reliable partner of our customers and to drive value and innovation in our industry.”
Global scarcity of raw materials is still evident, predominantly a result of Chinese environmental regulations restricting mining and processing. Since 2017, there has been a step-change in refractory raw material production, as China has rigorously implemented new environmental standards. Consequently, the refractories industry has been faced with supply shortages leading to elevated raw material prices, especially in higher grade dead burned and fused magnesia.
Increased export taxes, more restrictive allocation of explosives, and the nationalization or controlled consolidation of mining operations in China have structurally altered the production, pricing, and dynamics for industrial minerals; this situation is expected to remain in 2019. While the high price levels of 2018 are not perceived to be the long-term equilibrium, and prices have already softened recently, both costs and prices for basic and non-basic raw materials are expected to settle at levels much higher than those that prevailed before 2017.
Additional information is available at www.rhimagnesita.com.