Tag Archive: raw materials

  1. Does record price aluminium threaten the bicycle industry?

    Comments Off on Does record price aluminium threaten the bicycle industry?

    Nieuwsfiets.nu notes that the raw material prices of aluminum have risen to their highest level in 10 years. On top of that, energy prices are increasing. With the bicycle industry heavily reliant on aluminum, will there be knock on effects?

    Thanks to a high demand for aluminium, some environmental factors, and the continued impact on logistics and labour of the coronavirus pandemic, the London Metal Exchange price for aluminium has in a number of months crept up from €1.31 to €2.26 per kg. This price level is not expected to fall in the near term. 

    This is compounded by high energy prices. Niewfiets.nu takes an example from the Netherlands, in smelter Aldel, who has recently had to move to reduced production. The price for a megawatt-hour of gas has risen to €300, compared to before the corona crisis when that price was about €20. The production of a ton of aluminium therefore costs Aldel €4,500 in electricity costs, while the market price for a ton of aluminium is currently €2,500. is. Aldel is of course not the only aluminium smelter facing this.

    Such a situation is already having an impact on manufacturing, and the article considers how this might impact product prices in the bicycle industry, where many frames and components are made of aluminium. With a boom in product demand, and climbing container prices, Niewfiets.nu reached out to the industry to ask if they believe the market suffer another price increase. The replies were few, with the Chinese contacts being the most responsive. There is word that raw frame tube prices have already doubled since April and that this will be noticeable in the market.

    As winter progresses, high energy prices will be more keenly felt. It has also been reported that some factories in China, including those in the bike trade, have experienced shutdowns due to electricity shortages. This will be felt down the line in lead times and availability of components.

    The publisher mentions that the price increases of the raw materials will have a limited effect on the final price of bicycles. It is the very high prices of container transport that has the greatest current influence. Ultimately, the combination of all these factors means that bicycle manufacturing is certainly facing a cost squeeze.

    Source: https://nieuwsfiets.nu/2021/10/21/bedreigt-recordprijs-aluminium-de-fietsindustrie/?utm_source=mailpoet&utm_medium=email&utm_campaign=nieuwsfiets-nu-continental-trekt-stekker-uit-e-bike-divisie-idc-urban-arrow-verdubbelt-bezoekersaantal_269

  2. Improve efficiency of raw material sourcing to reduce emissions, study finds

    Comments Off on Improve efficiency of raw material sourcing to reduce emissions, study finds
    A European Environment Agency (EEA) report dated August 30 2021 has illuminated the impact of raw material extraction and processing on emissions.

    Following climate-friendly practices has significant potential to cut greenhouse gas emissions in Europe and globally, with the extraction and processing of raw materials alone accounting for an estimated 18 % of the EU’s total consumption-based greenhouse gas emissions. The study concerns the extraction and processing of key raw materials for consumption in Europe, of the following types: copper, iron, gold, limestone and gypsum, bauxite and aluminium, timber, chemical and fertiliser minerals, and salt.

    It is suggested that raw material consumers can levy their purchasing power to influence suppliers to become more climate-friendly. This may take the form of including sourcing requirements in public procurement, or provisions in trade agreements for example. The EEA also lists opportunities for improvement, including “adopting a life cycle approach to allow better accounting and monitoring of climate-related impacts associated with raw material supply chains, promoting resource- and energy-efficient practices, promoting use of renewable energy sources during extraction and processing of raw materials, strengthening market demand for secondary raw materials and using international frameworks for increasing transparency and cooperation along the raw material supply chains.”

    In the quest to reduce emissions, this very first stage in manufacturing must not be ignored, and the report finds that better sourcing practices could potentially cut associated, consumption-based emissions by at least 10 %, or in many cases even more. Market demand and accessibility of information for end-users also come into play in working towards the goal of reducing harmful emissions.

    Read the article from EEA here.

    View the report here.

Campaign success

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

Member profile

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.