Raw material prices rise - new yachts will become more expensive worldwide
Updated: Jul 24, 2022
For the yacht industry, yachts are expected to become 5-15% more expensive because materials important for yacht building such as polyester resin, epoxy, lead and steel are already between 30-120% more expensive.
In recent months, commodity prices have risen significantly. The covid pandemic has led to an imbalance of demand and supply worldwide. This is because the economies in Asia and the Middle East, but primarily China, have already returned to growth in the second half of 2020, in contrast to Europe or the USA. The situation was exacerbated at the beginning of the year by plant outages in the USA due to the onset of winter and overdue maintenance work in European plants. The prevailing disruption of logistics chains worldwide, the full utilisation of ships, congestion at seaports, severe delays in deliveries and the lack of empty containers are leading to an additional increase in logistics and freight costs. Now, in addition, the economy, which is in decline in many places, is picking up with progressive vaccinations and fewer restrictions.
The supply of many metals in particular is relatively tight. Many mine operators cut back their production during the pandemic. As a result, stocks have become scarce - supply in the commodities sector cannot be expanded as quickly. More and more countries are setting plans for their own CO2 neutrality. The EU, the USA and Canada want to achieve this goal by 2050, China at least by 2060. For the green technologies, industrial metals are needed above all. According to Berenberg, the cumulative demand for metals will increase from currently about 5 million tonnes per year to over 10 million tonnes per year by 2035.
Since January, the cost of key components such as epoxy resins has risen by 60 per cent in Europe. In solvents, the price of acetone has risen 123% and butyl acetate 91%. A similar situation prevails for paints. Since January, the cost of key components such as epoxy resins has risen by 60 per cent in Europe. In solvents, the price of acetone has risen 123% and butyl acetate 91%. A similar situation prevails for paints. Big markets act as a catalyst in the composite sector: Architecture, renewable industries and the transport sector have rapid growth for resins and fibres, these markets are by far larger than the yacht industry.