For manufacturers of these fired building materials, natural gas is both fuel and raw material and is therefore indispensable for the production process. The gas is first of all necessary to reach very high temperatures, but according to the KNB it is also part of the product itself because it forms a connection with so-called clay minerals.
The huge worldwide demand for gas and coal for electricity generation has also pushed the price of CO2 emission rights to record levels. Brick, tile and roof tile manufacturers are also the victims of this.
Price increases of 10%
“It seems that price increases for construction ceramics are no longer unavoidable,” says KNB director Ewald van Hal. He knows that parties in the industry have already announced price increases of about 10%. It may not stop there.
Due to the high energy prices, the prices of certain metals are also rising rapidly. Zinc, for example, has become more expensive in recent days. Another factor is that manufacturers are reducing their production because it has become too expensive to continue working at full power. Metals company Nyrstar has already announced that it will halve production in its three European zinc smelters, including those in Budel in North Brabant.
KNB calls on the government to take the consequences of higher energy prices seriously. According to Van Hal, the high prices weaken companies at a time when they are on the eve of major climate investments. The sector also fears disruption of its own international competitive position if governments abroad take measures such as freezing energy prices and lowering energy taxes, but nothing happens in the Netherlands.
‘Bricks, roof tiles and tiles considerably more expensive’ | Financial
Source link ‘Bricks, roof tiles and tiles considerably more expensive’ | Financial