Vesuvius: price rises from January 2005

Vesuvius, the worlds leader refractory company, plans to increase prices by at least 5% in January 2005. Giancarlo Cozzani, Chief Executive Officer of Vesuvius Group said: “For months now, we have bee…

Vesuvius, the worlds leader refractory company, plans to increase prices by at least 5% in January 2005. Giancarlo Cozzani, Chief Executive Officer of Vesuvius Group said: “For months now, we have been facing continuous price increases in raw materials. As an example, the cost of refractory Bauxite has doubled in the past few months, and that of Graphite by more than 50%. The beginning of 2004, has seen the setting-up of a Chinese Magnesia cartel, and as a result, the cost of Magnesia has risen by nearly 100%. More recently raw materials of Western origin, such as Alumina and Zirconia products have been increased by double digit percentages. In addition, we have been facing price moves in oil, energy, and transportation. We can no longer bear these increases without passing on to our customers the part we cannot compensate with improved manufacturing efficiencies.” The price rises are due to take effect from January 2005. The steel industry will be the main sector affected, but the cement and lime, chemical, ceramic, foundry, aluminium and glass industries will also be impacted by these increases.