The rising prices of aluminium and stainless steel, along with global steel shortages and increases in commodity costs, are driving volatility in the prices of its pipe references, warns BM Catalysts, UK manufacturer of catalytic converters, DPFs and front pipes.
The company notes costs of aluminised tubes are now 62 per cent higher than they were at the start of the year, with the manufacturer also being warned of a price increase of over 100% on its stainless steel coil supplies going into 2022.
These rising prices are heaping more pain on vehicle manufacturers already suffering from the global chip shortage.
Mark Blinston, BM Catalysts Commercial Director, said: “One of the main issues at play is demand and supply, as many steel mills closed or significantly reduced their output during the early days of the coronavirus pandemic. Surging demand since then has put pressure on the ability to keep up which naturally leads to supply shortages and rising costs. It’s a similar situation to the increased prices of building materials we’ve seen in the news in recent months.”