Filame will be present at Advanced Engineering, the leading exhibition for innovation in the Belgian manufacturing industry, on May 11 and 12, 2022 in Antwerp.
You will discover the current trends and the latest topics in the field of product development. Filame will be exhibiting its know-how in the manufacturing of metal parts out of wire and strip.
Come and visit us at Antwerp Expo (Jan Van Rijswijcklaan 191 – Antwerp), booth 149
Against the backdrop of the war in Ukraine and strong tension on the price of nickel, especially after the suspension of the LME at the beginning of the month, which caused the price of a ton of nickel to rise by €14,000/T over one month (an increase of about 69%), the price of the alloy surcharge for all grades has risen sharply, after a slight downturn in February and March.
It should be noted that the price of the alloy surcharge is set on a month-to-month basis by the various suppliers according to the grades of stainless steel they supply. There are therefore differences between the different suppliers but the trend is the same for all of them.
This increase in the price of extra alloy, coupled with an increase in the price of steel, will lead to strong increases in the prices of the different grades of stainless steel. These increases will of course vary between suppliers and wholesalers depending on the type of packaging (sheet, coil, wire), the quantities and dimensions requested, the rolling or work hardening qualities, etc.
As reported by Het Staaljournaal, the events in Ukraine have created chaos on the steel market. This was compounded by the problems with nickel on the LME, which led to a suspension of the nickel price. Trading did not resume until the end of last week. At the same time, these events also had a significant effect on the price of energy and therefore on the production prices of steel, stainless steel and aluminum, whose production requires large quantities of energy, even though the upward trend in energy had begun with the events in Ukraine. The aluminum market is also strongly impacted.
In this context, several steel mills are maintaining high prices and offering reduced tonnages for hedging purposes. Moreover, as some buyers, especially those who did not replenish their stocks in previous months after last year’s difficulties, are trying to obtain new stock for fear of running out later, there is an effect on demand that is also pushing prices up.
It is therefore difficult to predict with a reasonable degree of certainty the evolution of the price of steel and stainless steel materials and their availability. Prices are often set on a day-to-day basis according to availability and there is often no way to obtain commitments in this regard for periods longer than 24 hours.
Filame’s supplier panel reports a price increase of € 410/430 per ton of steel. For spring steel wire the increases are about 450 €/ton.
As for stainless steel, although the alloy surcharge continued to rise in March, the effect of the nickel crisis on the LME has not yet been reflected in the price. We will have to wait for the indications for April and May, knowing that the price of extra alloy is set monthly. Nevertheless, the increase in the price of steel will already have an influence on the price of stainless steel, whose share of steel in the price represents between 40 and 50% of the total price.
In this context, Filame indicates that its price offers are subject to changes in the price of the material and that, depending on the date of the order compared to the date of the offer, Filame may have to adjust its prices according to the purchase price of the material at the day of its delivery.
Filame has acquired 3 Bruderer BSTA 30 automatic high-speed presses.
This acquisition enables Filame to significantly increase its production capacity for small parts in large series, particularly in the fields of automotive retaining parts (quickie washers, starlock ® washers, axle lock washers, Belleville washers, etc.), in steel or stainless steel, spring or non-spring quality.
Filame is thus confirming its position as a key player in these markets.
These Bruderer BSTA 30 presses have a capacity of 600 strokes per minute, which gives Filame a total production capacity of 108,000 parts per hour on its three presses.
Filame can, if required, equip these new presses with multi-pallet unwinders to increase the uninterrupted production time. Filame can also configure its presses with a waste chopper at the press exit or a belt rewinder, depending on the needs for speed and precision.
These Bruderer BSTA 30 presses, coupled with Filame’s specific know-how in the design and manufacture of precision tools for high-speed presses, and its existing fleet of presses in these fields, give Filame an unrivalled ability to meet all its customers’ production needs from small parts to very large series and in extremely short lead times.
Unfortunately, the beginning of 2022 did not result in a decrease in material prices or even a slowing down of the price increase.
At the beginning of the year, the trends observed at the end of 2021 continue in the same direction and to this is added the increase in energy prices. Several steelmakers and stainless steel foundries are starting to apply an “energy and carbon tax” to pass on the sharp rise in energy costs and the additional costs associated with the new regulations on C02 emissions.
Having reviewed its supplier base, Filame expects the following price increases in the coming weeks:
– SH spring steel wire : increase of 150 € / ton
– Hardened C75 steel sheets and coils : increase of 200 € / ton
– Stainless steel : increase of the steel part (excluding alloy surcharge) by €700/tonne and “addition of an energy and carbon tax” from €235 to €250/tonne
As for wire and spring steel, as these prices are fixed every six months, there should be no further increase before 1 July 2022.
The price of other materials is much more variable and in particular the price of stainless steel depends on the alloy surcharge, which is set monthly.
A decrease in the price of stainless steel is not to be expected. Even if the steel component of stainless steel does not increase at the same rate, the alloy surcharge component, which varies from month to month, continues to increase at impressive rates. The prices of chromium and nickel, the main metals that make up the extra alloy, are still under strong pressure on the international markets.
Of course, the price of a given material, both wire and flat, also depends on the desired quantities (MOQ) of wire diameters or thicknesses (drawing and winding costs or rolling and slitting costs).
Filame makes every effort to try to satisfy its customers to the best of its ability according to the availability of its stocks and those of its suppliers. To mitigate the effects of the situation Filame has developed a very large supplier base for both the most common steels and stainless steels. But the inventory status at suppliers is extremely low and it is not always easy to find material within acceptable deadlines.
Filame cannot currently guarantee either the delivery times requested by its customers or the maintenance of prices from one order to another or from one month to the next. In particular, Filame will be obliged to pass on the increase in material costs according to the stocks of material that it can find on the market and the prices obtained from its suppliers.
Filame asks its customers to send their order forecasts sufficiently in advance to allow them time to find the material necessary to meet their needs, while avoiding over-ordering in order not to worsen the overall situation. Filame asks her clients not to hesitate to contact her so that together we can analyze the situation and the best way to act.
Filame also recommends that its customers order promptly after receiving an offer to avoid a price increase between the time of the offer and the time of ordering. The delivery times indicated in an offer are given to the best of Filame’s estimates but cannot currently be considered as a firm commitment.
This is a never-before-seen situation that all contractors like Filame face and which is beyond their control. We regularly publish on our website (www.filame.com) and on our Linkedin page (do not hesitate to follow us on this page) news relating to the development of this situation.
According to a study by the French consultancy AgileBuyer and the Conseil National des Achats, the following trends have been observed in France. They mark a fundamental evolution that is also valid for other countries in Europe, including Belgium.
Extract from the Executive Summary of this study
In 2022, crises will push 47% of purchasing departments to relocate. This is 17 points more than in 2021. Although price remains a barrier (13% in 2022 compared to 18% in 2021), it is above all difficult to buy French because certain products are not available in France (for 30% of respondents). In 2022, the areas where purchases will be relocated will mainly be in Europe (80%) before France (72%).
In 2022, 68% of companies will be faced with shortages. Shortages are to be found in strategic sectors such as the automotive industry (78% of respondents) and mechanical engineering/metallurgy-furniture equipment and textiles (75%). These shortages have had a strong impact on company margins according to 65% of respondents.
Metals (23%), raw materials (excluding metals and chemicals) (17%) and electronics (14%) top the list of shortages identified by purchasing managers. This is closely followed by IT (13%) and transport (12%). Thus, the lack of semiconductors has a strong impact on production in the electronics and IT sectors, but also in the automotive sector.
82% of purchasing departments will implement actions to secure supplies in 2022, compared to 74% in 2021. Continuity and security of supply are considered more important for 2022 for 45% of purchasing departments.
In this context, the Filame Group, thanks to its in-depth sectoral knowledge of the sectors most affected by this fundamental trend, its policy of closely monitoring the evolution of raw materials (see our various points on https://www.filame.com/fr/actualites/), its policy of anticipating purchasing needs in order to meet the forecasts of its customers, its mastery of materials (https://www.filame.com/fr/matieres-finitions/) and its broad technical capabilities, can help its customers to respond quickly and solidly to the supply challenges they face.
With over 20% of its turnover from civil engineering machinery, forklift & industrial vehicle, The Filame Group has extensive expertise with global and European leaders in these industries.
For this sector, Filame mainly manufactures a set of laser cut parts or mechanical press (shim, washer) and a set of sheet metal parts and welded assemblies. The Filame Group masters the wide range of the control and exigence systems needed for clients such as Caterpillar.
From the unit to several million pieces, Filame offers a comprehensive solution. Whether you are in a planning phase and need our expertise or already have your final plans and specifications, we are here to help you.
On 8 December, Filame won the International Award from Lead Forensics for its international digital strategy.
Lead Forensics highlighted the successful integration of Filame’s website (www.filame.com) with the Lead Forensics solution for tracking visits, and more specifically the strategy implemented to qualify visitors according to their industries and geographical markets.
This solution allows Filame to have a very quick proactive approach to qualify the needs of prospects and customers who visit its website and interact with them about it.
The price of the alloy surcharge (share of chromium and nickel) in the price of stainless steels continues to rise with no easing in sight. This share constitutes more than half of the cost of stainless steels.
Moreover, it should be remembered that the price of stainless steel is that of the day of delivery with the price of the current month’s alloy surcharge. Suppliers can no longer afford to offer locked-in prices for periods longer than a few days in view of the volatility of prices.
Finally, tensions on delivery times remain high and it is not uncommon to have delivery times fixed at several months for certain grades of stainless steel.
According to its various suppliers and the suppliers it met at the BLECH in Stuttgart last week, Filame thinks that further increases in material prices are to be expected, particularly for strip (sheet and coil):
The various suppliers consulted by Filame cannot predict the duration of the upward movement or predict when prices might stabilise.
Delivery times remain relatively long. Filame therefore urges its customers to plan their orders sufficiently in advance to enable Filame to continue to anticipate its purchases and to continue to keep delivery times as reasonable as possible.
