It has been over two months since the war at Ukraine started and unfortunately there is no sign that these unprecedented injustice and war crimes would cease. Economic impacts are now spreading to the whole Europe from east to west and still there is not exit sign in the line of sight.
With your help and understanding we have survived these two hard months. With the average base load spot price on electricity of 217€/MWh and 117€/MWh for the gas we far from any reasonable pricing schemes. As the gas is crucial for our plant – we use it from more than 70 % in the melting process, we are keeping a constant eye on the future markets as well. At the time of writing this article the prospect for upcoming 12 months is not great – over 105-113 € are settlement prices for the rest of year 2022, with very little change in 2023.
These values might drop easily with the long-awaited end of the war, but they also tend to rise with any uncertainty of supplies, especially connected with the ban of Russian gas import. Unfortunately, there are other beasts awaiting but now they are covered by the energy price umbrella. There is a significant price increase of other crucial materials on the market.
Energy prices also affected vast fields of supplies including: soda ash, barium oxides, cobalt oxides, nickel oxides, nitrates, hot end coating, cold end treatment, tooling materials like cast iron and stainless stell, all packaging materials are incredibly expensive and last but not least the fuel for trucks to transport everything. Some of these items are starting to be short on stocks and delivery lead times are being prolong unpredictably.
It gives us no pleasure to share this information with you, but it would not be fair to disguise anything from you and to surprise you later. At this moment there is a stable flux of gas coming to Sklárny Moravia and we are maintaining high production pace in order to satisfy as much as possible of you – our loyal partners.
The shortage on container glass market is clearly visible, we are receiving dozens of RFQ on daily basis. It is our priority to supply to our long-term customers at the first time. Please be in touch with your account manager at Sklárny Moravia to be on the safe side with capacities and for latest news and updates.
Stay safe!
Radim Bondy – Commercial Director.
Slava Ukraini!
