Lockdown pushes up prices of vine posts

Wednesday October 28 2020 by Vitisphere

 To avoid buying second-rate steel, buyers should ask for steel material certificates. To avoid buying second-rate steel, buyers should ask for steel material certificates. - Photo credit : Profilaroid

Manufacturers of vine posts have been confronted with soaring steel prices. “The situation changes every month. For October, the increase is 9%”, says Sébastien Gouteux, sales manager for Profivi vine posts at Voestalpine Profilafroid.

In March, several steel manufacturers decided to take advantage of lockdown to carry out maintenance on their blast furnaces. “This is a process that takes several months for this type of industrial facilities”, explains Gouteux. Other manufacturers decided to produce less steel in order to avoid the build-up of inventories. At the same time, companies trading in steel rapidly sold their goods ahead of the market coming to a predicted standstill.

They were over cautious. “From June onwards demand started to rise again. Steel manufacturers and stockists feared they had too much steel but ultimately, they didn't have enough”, says Gouteux.

Voestalpine Profilafroid usually secures its supplies from ArcelorMittal Dunkirk and a Belgian factory. “At the moment this is no longer enough. We are looking around like crazy for raw materials that are quickly available at reasonable prices," says Gouteux.

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