Raw materials, an unknown for the agri-mechanical industry

«Italian agro-mechanical companies are still managing to meet orders, albeit by resorting to much more expensive supplies and using accumulated stocks. However, it is estimated that, if the tensions in the raw materials market do not return to normal levels soon, the stocks of companies to fulfil orders may not last more than six to eight months». FederUnacoma chairman, Alessendro Malavolti, warned once again on the raw materials crisis. The increase in commodity prices, which has been going on for several months, became particularly strong last September when energy costs grew by 365%, sheet metals and  hot rolled coils respectively by 234% and 200%, polyethylene by 160% and polypropylene by 123%, according to Anima Confindustria. The sector not only has to cope with the emergency concerning plastic and ferrous materials but also with the shortage of silicon metal. “While the cost of the energy bill is affected by economic factors, and can therefore return to acceptable levels over a certain period of time - Malavolti explained - the raw materials crisis is the result of a precise Chinese political strategy. China has reduced its exports of steel and ferrous materials to satisfy its fast-growing domestic demand, and as a result the purchase price of supplies for the agricultural machinery industry, both in Italy and abroad, has risen dramatically». The problem is not only in Italy, but – stated Malavolti - concerns the agri-mechanical sector worldwide.