In retrospect, the PREISGroup got through 2020 very well, among the circumstances. In relevant metal processing industries, such as the automotive industry in Germany, there is already a slight recovery, and demand from suppliers has been increasing since the beginning of this year. These unexpected increases in demand are currently leading to delays in the supply chain for raw materials around the world.
In the past year, production capacities were drastically reduced as a result of the pandemic, and employees were put on short-time work for months. In Germany, 36 million tons of steel were produced, as little as it has been since the financial crisis in 2009, and around 10% less than in average years before (source: https://www.stahl-online.de/index.php/themen/wirtschaft/konjektiven/).
These factors are currently causing steel prices to skyrocket, which leads to significant cost burdens in our product range and can no longer be compensated for by savings or increased efficiency in the manufacturing process.
This situation forces us to calculate a material surcharge for cast iron drainage pipe systems from March 15, 2021.
Agreements on the billing modalities are made with your contact person.