On this occasion we would like to approach the issue of how does the rise in raw materials price impact us.
At Quimser we continue to implement internal improvements to mitigate the adverse effects of the current marketplace challenges where possible. However, it is evident that this alone is not sufficient to offset the current rise in costs.
Below, we will try to summarize the main aspects of the situation:
- 1 · Oil price: Despite oil price stabilized in the last months of 2021, the latest news warns that oil will continue to rise 100% this 2022.
- 2 · Transportation: It is a well known fact that containers have doubled its price. To this must be added the blockage in the Suez Canal in March 2021.
- 3 · Energy: At the end of 2021, Spain began to suffer disproportionate increases in energy, mainly in the gas supply, due to the closure of an Algerian gas pipeline. In addition, the uncertainty in the Soviet zone (Kazakhstan / Ukraine / Belarus) is also affecting the price of electricity.
- 4 · Companies. One of the collateral problems of the pandemic is the disappearance of companies.
- 5 · Climate change: The effects of climate change are also increasing. Canadian olive oil or flour has risen 200% due to the summer drought, causing difficulties in some regions due to a lack of pasta.
- 6 · COVID-19 confinements and lockdowns are also blocking the movement of goods. China and Vietnam are two clear examples.
- 7 · Changes in the way of consuming: Batteries are a clear example of it. We need more and more (for cars, bicycles, scooters, motorcycles, solar panels, etc). The TCMTB, one of the components used to make batteries, is a shortage in the market.
- 8 · Aid inflation for economic recovery: Many governments have put money in motion to deal with the pandemic. Money that in the long run is generating a strong rise in some products.
At Quimser we manufacture chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. We expect this situation to normalize, meanwhile it is very difficult to make reasonable forecasts for 2022.
If you need more information, do not hesitate to contact us