Aluminium prices are hovering at a 13-year high as the popular base metal, second to steel, continues to be in high demand and low supply across the world. A deepening energy crisis is also causing concern and squeezing supplies for the material.
Like many other industries around the world, Sculptform is affected by the rising cost of aluminium and has to adjust the price of our aluminium products accordingly.
Changes to Our Pricing
From the 1st of December 2021, we’ll be increasing the price of our aluminium Click-on Battens, Cladding and Facade Blades by 10% on all new orders and quotes. As a consequence of price uncertainty, our term of estimate validity will reduce from 45 days to 30 days.
We will be honouring all existing quotes up to 45 days from their date of quotation as per our trading terms. For reference as of today, that includes any and all quotes with a date after 22 Nov 2021.
For projects where you are already the nominated subcontractor, please expect a call from your dedicated project representative shortly to work through the value management process.
Doing Our Best to Keep Costs Down
Over the course of the last year, the price of aluminium increased by 52%. Despite this, to date, Sculptform has only increased our pricing by 35-40%. With our next increase on December 1st.
We have been in thorough consultation with our suppliers to help limit the impact of this price rise on our valued customers. We have managed to avoid our customers having to face an additional 12-17% price increase through strong supplier relationships, proactive procurement and internal process improvements.
Causes of the Price Increase
Fluctuations in economic activity during the pandemic have amplified the impact on supply and continually rising demand. The aluminium industry has suffered from excessive capacity for many years, but this year the supply has been tight. Economic recovery, helped by stimulus packages in various countries, has caused a huge demand for aluminium for use in commercial and residential construction and the car industry.
Further adding to the continual price increase is the world’s largest manufacturer of aluminium, China, who have recently reduced their production of the base metal to meet carbon emissions targets amid tight electricity supplies.
For example, aluminium production uses a lot of electricity, which was disrupted in China’s Yunnan province because a drought affected their hydropower supply. So, provincial authorities in Yunnan (which produces 10% of China’s aluminium capacity) have restricted aluminium production in plants that use hydroelectricity for smelting.
Our clients are at the heart of every project and it’s our job to deliver on the big picture and the smallest detail. We are aware of the consequences of price increases and the negative effects they can have on your projects.
If you have any questions about our aluminium price increase and how it affects you and your project, you can contact us below or give us a call on 1800 008 828.