Companies in the glass and metal industry are once again facing price increases, this time for aluminum. Several vendors, including Oldcastle BuildingEnvelope® (OBE) and Trulite Glass and Aluminum Solutions, have sent notices to some customers warning of an increase in the price of aluminum products. At least one company has been notified of an 8% increase by each organization.
A number of companies in the glazing industry have reported prices for various products such as glass, PVB and other raw materials since May of this year.
“The aluminum shortage in the United States has resulted in unprecedented price increases and can last up to two years,” according to Trulite’s price notification letter. “The cost of aluminum has increased by more than 50% since January and experts believe it will continue to rise. Unfortunately, aluminum is not the only thing that is rising in price. We have seen a dramatic increase in the cost of fuel, wood and wages. These increases make it necessary to implement an 8% price increase effective September 6 for all of our aluminum systems and their respective components.
OBE issued a similar statement, saying that “strong demand for aluminum-intensive products and current global supply chain challenges will continue to put pressure” on the overall cost of aluminum.
According to the London Metal Exchange, the world’s center for industrial metals trading, the price per tonne of aluminum fell from $ 2,544 on August 19 to $ 2,648.50 on August 24.
The unprecedented rise follows a recent fire at the Jamalco refinery in Jamaica, raising fears of a tight supply.
Noble Group Holdings Ltd. (NGH), Industrial Raw Materials Supply Chain Manager, Affiliate General Alumina Jamaica Limited is co-owner of the Jamalco Joint Venture. NGH issued a statement saying, “A major fire that broke out at the Jamalco power plant on Sunday August 22 has been extinguished. The plant produces electricity, compressed air and steam for alumina refining operations.
The statement also says that no serious injuries have been reported and that a full damage assessment will be carried out to determine the cause of the fire and estimate the extent of the damage.
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