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Price Increases, Delays... What Is Happening?

Hello everyone, I'm Marco from Fenceshop, the e-commerce of Rete Plastic. In this video, we want to address a topic that is causing a lot of confusion in the world of commerce: the disproportionate price increases, delivery delays from suppliers, and the general climate of uncertainty we are experiencing. We are recording this video at the end of May 2021, a period in which we are witnessing an unprecedented situation.

Price Increases of Raw Materials

Since November 2020, raw materials have seen an exponential increase in prices. Here are some significant data:

• Iron has increased by 50%.
• Polymers, therefore plastic materials, have increased by 53%.
• Wood has seen a 100% increase.

These increases inevitably reflect on the final retail price. For a concrete example, the 7-meter-high sports posts we used to produce, sold at the beginning of January for about 100 euros, now cost 141 euros. Even the mesh that we purchase has undergone a significant increase: a mesh that cost 139 euros per roll, now costs 213 euros.

Causes of Increases

I'm not an analyst, but by reading various sources, I have identified some possible causes:

• Productive recovery in Asia: China, in a strong recovery, has hoarded raw materials like iron, wood, and plastic, reducing the availability for other countries.
• Few major producers: The major producers of raw materials are few and can influence prices globally.
• Climate factors: In the United States, a severe cold wave halted polymer production, reducing it by 90% for months.
• Suez Canal Blockage: This event slowed the transit of goods, creating additional supply problems.

Problems in Procuring Raw Materials

We ourselves are facing difficulties in obtaining raw materials from our suppliers. This results in delivery delays and uncertainty about availability times. Ordering ten items and receiving only four or five has become a common practice. This creates an infinity of problems, especially when there is no certainty on when the goods will be available again.

Climate of Uncertainty and Tension

The climate of uncertainty is harmful. We receive dozens of calls and messages from customers daily asking for delivery times. Unfortunately, we cannot guarantee exact times, which generates frustration for both us and the customers. Even though we strive to do our best, the lack of raw materials limits our capabilities.

Growing Demand Despite Prices

One surprising thing is that, despite the price increases, demand is still high. This phenomenon makes us wonder if the real problems have yet to come. Even our suppliers and customers confirm that demand is high, which is strange given the current situation.

Conclusion

The keywords during this period are increases, long times, lack of raw materials, and confusion. It's a difficult time for everyone, but we try to face it with patience and determination. If anyone has suggestions or more detailed explanations, we would be happy to hear them.

We invite you to visit our websites www.fenceshop.eu for our e-commerce and www.reteplastic.it for our institutional site. Subscribe to our channel to stay updated on the world of fences. Thank you for your attention, and we hope to see a solution to this situation soon. Bye!