Development in prices for raw material and for transport
As informed in July the development on the market for raw materials for pre-insulated pipe systems has for the four main raw materials been different to our expectations at the beginning of the year. In total the difference has been within the estimated frames and therefore we are able to maintain prices according to LOGSTOR Price List 02/18 until end of 3rd quarter 2018.
However during 3rd quarter the out-look has changed. The prices for raw materials continue to be on a high level and looking beyond 3rd quarter some global and regional conditions will change. The probable result is more volatile markets and prices, which might increase with short notice.
The most important factors are the escalating trade conflict between US, China and EU, and the so far unknown consequences of Brexit.
Due to high prices for energy, national restrictions and general lack of capacity we see increase in costs for transport. Also costs for wages and production are increasing.
All in all the present situation and the tendencies we observe make it necessary to adjust our prices and a new price list will be valid as per 1st October 2018.