March 21, 2023
Market Forces Impacting Pricing and Availability of Commodities Key to the Fleet Industry
The 137th State of the Fleet Industry video produced by Automotive Fleet offers insights into the state of the fleet market as presented by AF Editor Mike Antich. In this episode, we talk with Mike Butsch, VP of global business development for Primrose Alloys.
🎙Today's topics include:
- In the automotive sector, demand for aluminum has softened due to component challenges in the automotive, medium-duty truck, and heavy-duty truck segments, which has created a slight relief in prices.
- There is a strong influx of aluminum orders from Boeing and Airbus, which will lengthen lead times for the balance of the year. Production constraints for stainless steel has lengthened lead times to 50-80 weeks for delivery.
- The ongoing war between Russia and Ukraine will continue to exert upward pressure on commodity prices due a decrease in product availability since both countries were strong exporters of aluminum and steel. In addition, ongoing tariffs on Chinese steel will put upward pressure on prices.
- The increased expenditure of munitions in Ukraine war has decreased munitions stockpiles in major industrial countries by 10-12 years. Pressure will mount to replenish stockpiles, putting upward pressure on brass and copper used in ammunition and heavier munitions and aluminum and stainless steel used in military equipment and missiles. Anticipation that these pricing pressures will begin at the start of 2024 calendar year.
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