Steel price UP, Car price UP

[Contipro]

in my work industries,  we are facing raising cost due to global shortage of steel material. 

I think it may soon affecting car manufacturing sector when the existing material stock ran out, as per articles below. 

 

https://www.wapcar.my/news/not-just-semiconductors-steel-is-getting-more-expensive-car-prices-could-go-up-33343

 

Not just semiconductors, steel is getting more expensive, car prices could go up

Hans·Sep 8, 2021 05:12 PM

Car prices are expected to increase in many parts of the world as shortage in semiconductors and rising prices of raw materials dent margins to a point that car manufacturers can no longer absorb. In some countries like India, the increase in car prices has already happened.

A report by Japan’s Nikkei says Toyota has concluded a new round of price negotiations with Nippon Steel, with the agreed price to be USD 182 higher than before, the largest increase in 10 years.

To get the lowest cost, Toyota negotiates the wholesale price and do the purchase of steel rolls on behalf of its suppliers. Prices are negotiated semi-annually based on the prices of iron ore and coking coal, the main raw materials used in making steel.

Steel is one of the biggest contributor in the sum of raw materials cost for a car. An average family car has about 700 kg of steel.

The cause of increase in steel prices is similar to the shortage in semiconductor parts – with the rapid recovery of economic activities post-Covid-19 lockdowns around the world, steel foundries can’t keep up with demand and many manufacturers have not placed their orders earlier, due to difficulties in making projections for an economic recovery.

Orders for manufactured goods typically need to be locked in at least 6 to 9 months in advance and suppliers will in turn, make their own forecast based on the orders receive. So a shortfall in forecast will cascade through the supply chain.

Korea, another major steel producer, is also seeing price increase from Hyundai Steel and POSCO, which the Korea Economic Daily reports to be up by USD 46 per tonne – the first increase in Korea in 4 years.

Prices of copper, another key material in automotive electronics, have more than doubled.

A survey by the Korea Automobile Manufacturers Association (KAMA) in May revealed that cost for Korean car manufacturers are now paying up to 20 percent more for semiconductor parts.

Even Korean tyre makers Hankook, Kumho and Nexen, have either raised prices of their products, or have announced plans to do so soon.

Meanwhile in India, Tata, Toyota, and Honda have all raised prices of their cars slightly (low single digit percentages), citing increase in raw material cost as the reason.

 

 

 

 

[kobayashiGT]

7 minutes ago, Contipro said:

in my work industries,  we are facing raising cost due to global shortage of steel material. 

I think it may soon affecting car manufacturing sector when the existing material stock ran out, as per articles below. 

 

https://www.wapcar.my/news/not-just-semiconductors-steel-is-getting-more-expensive-car-prices-could-go-up-33343

 

Not just semiconductors, steel is getting more expensive, car prices could go up

Hans·Sep 8, 2021 05:12 PM

Car prices are expected to increase in many parts of the world as shortage in semiconductors and rising prices of raw materials dent margins to a point that car manufacturers can no longer absorb. In some countries like India, the increase in car prices has already happened.

A report by Japan’s Nikkei says Toyota has concluded a new round of price negotiations with Nippon Steel, with the agreed price to be USD 182 higher than before, the largest increase in 10 years.

To get the lowest cost, Toyota negotiates the wholesale price and do the purchase of steel rolls on behalf of its suppliers. Prices are negotiated semi-annually based on the prices of iron ore and coking coal, the main raw materials used in making steel.

Steel is one of the biggest contributor in the sum of raw materials cost for a car. An average family car has about 700 kg of steel.

The cause of increase in steel prices is similar to the shortage in semiconductor parts – with the rapid recovery of economic activities post-Covid-19 lockdowns around the world, steel foundries can’t keep up with demand and many manufacturers have not placed their orders earlier, due to difficulties in making projections for an economic recovery.

Orders for manufactured goods typically need to be locked in at least 6 to 9 months in advance and suppliers will in turn, make their own forecast based on the orders receive. So a shortfall in forecast will cascade through the supply chain.

Korea, another major steel producer, is also seeing price increase from Hyundai Steel and POSCO, which the Korea Economic Daily reports to be up by USD 46 per tonne – the first increase in Korea in 4 years.

Prices of copper, another key material in automotive electronics, have more than doubled.

A survey by the Korea Automobile Manufacturers Association (KAMA) in May revealed that cost for Korean car manufacturers are now paying up to 20 percent more for semiconductor parts.

Even Korean tyre makers Hankook, Kumho and Nexen, have either raised prices of their products, or have announced plans to do so soon.

Meanwhile in India, Tata, Toyota, and Honda have all raised prices of their cars slightly (low single digit percentages), citing increase in raw material cost as the reason.

 

 

 

 

Indeed. Should i start buying some steel ETF? 😋

https://finance.yahoo.com/quote/SLX

[Watwheels]

Actually it is a surge in demand after the easing of lockdowns.

[Freeder]

Everything up except Sinkie’s salary 😰

[Beregond]

1 hour ago, Contipro said:

in my work industries,  we are facing raising cost due to global shortage of steel material. 

I think it may soon affecting car manufacturing sector when the existing material stock ran out, as per articles below. 

 

https://www.wapcar.my/news/not-just-semiconductors-steel-is-getting-more-expensive-car-prices-could-go-up-33343

 

Not just semiconductors, steel is getting more expensive, car prices could go up

Hans·Sep 8, 2021 05:12 PM

Car prices are expected to increase in many parts of the world as shortage in semiconductors and rising prices of raw materials dent margins to a point that car manufacturers can no longer absorb. In some countries like India, the increase in car prices has already happened.

A report by Japan’s Nikkei says Toyota has concluded a new round of price negotiations with Nippon Steel, with the agreed price to be USD 182 higher than before, the largest increase in 10 years.

To get the lowest cost, Toyota negotiates the wholesale price and do the purchase of steel rolls on behalf of its suppliers. Prices are negotiated semi-annually based on the prices of iron ore and coking coal, the main raw materials used in making steel.

Steel is one of the biggest contributor in the sum of raw materials cost for a car. An average family car has about 700 kg of steel.

The cause of increase in steel prices is similar to the shortage in semiconductor parts – with the rapid recovery of economic activities post-Covid-19 lockdowns around the world, steel foundries can’t keep up with demand and many manufacturers have not placed their orders earlier, due to difficulties in making projections for an economic recovery.

Orders for manufactured goods typically need to be locked in at least 6 to 9 months in advance and suppliers will in turn, make their own forecast based on the orders receive. So a shortfall in forecast will cascade through the supply chain.

Korea, another major steel producer, is also seeing price increase from Hyundai Steel and POSCO, which the Korea Economic Daily reports to be up by USD 46 per tonne – the first increase in Korea in 4 years.

Prices of copper, another key material in automotive electronics, have more than doubled.

A survey by the Korea Automobile Manufacturers Association (KAMA) in May revealed that cost for Korean car manufacturers are now paying up to 20 percent more for semiconductor parts.

Even Korean tyre makers Hankook, Kumho and Nexen, have either raised prices of their products, or have announced plans to do so soon.

Meanwhile in India, Tata, Toyota, and Honda have all raised prices of their cars slightly (low single digit percentages), citing increase in raw material cost as the reason.

 

 

 

 

yes. now kalangguni laughing all the way to the bank😂

[Mustank]

Long Zhong kee!!!

[Arogab]

24 minutes ago, Freeder said:

Everything up except Sinkie’s salary 😰

This is like yearly trend leh, all things keep going up, agree the salary never go up only. Haha

[Mustank]

I also want to UP

[Wildfaye29]

dat hang kee gei, gu lee kang bo kee.

[Spurman]

Layman term

 It may cost 700bucks for that 700kg of steel.

Now it cost 1400buck for that 700kg.

 

No joke. And thats b4 shipping cost up.

Its a real situation.

Car pricr increase so be it. Construction cost gonna be double leow as rebar also cost double leow. 

[Inlinefour]

2 hours ago, Freeder said:

Everything up except Sinkie’s salary 😰

residents of ivory tower up lah 

[ER-3682]

Start collecting Scrap Iron,Steel & Aluminium...

[Ct3833]

that will force car manufacturer to use more plastic components.

[Dannnn]

Means must buy car made of alu and carbon fibre.

[ER-3682]

7 hours ago, Dannnn said:

Means must buy car made of alu and carbon fibre.

Then prepare to pay over $180,000 for a normal Japanese Saloon.