RHI Magnesita raises prices by 5%

UK: Refractory manufacturer RHI Magnesita has increased its prices for industrial and steel users by 5%. It says the rise is a consequence of the persistent increase in operating, raw materials, manufacturing, environmental and regulatory costs. The increase has been applied to the whole product range including basic (magnesia and dolomite based) and non-basic products, varying in a range of 3% to 20%. Customers have already started to be informed accordingly.

The company said that global scarcity of raw materials was still evident, mainly due to Chinese environmental regulations that have restricted mining and processing. Since 2017 there has been a ‘step’ change in refractory raw material production as China has implemented new environmental standards, which adjusted the level of production to global standards. Consequently, the refractory industry has been faced with supply shortages, leading to elevated raw material prices especially in higher grade dead burned and fused magnesia. This situation is expected to continue in 2019 although in the medium term prices are expected to fall below levels seen before 2017.