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Increases in raw materials do not cease

The rise in prices in raw materials is affecting the industry, the increase in oil and copper tariffs must now also be added to what is happening with the price of steel; the above has caused the increase in the price of finished solutions and spare parts, because as in other industries, consumer prices also increase in this one to compensate in some way for the investment that must be made in raw materials. The most worrying thing is that so far there is no change in this trend, on the contrary, it seems that prices will continue to rise.

Historically, the increase in steel began at the beginning of this decade. According to data published by the Panamanian newspaper La Prensa, citing sources from the Panamanian Chamber of Construction (Capac), in 2003 the ton of steel was at U$220; in 2004, in one of the peaks that this material has had, it reached U$700, which changed in 2005 the year in which it began to descend. In 2006 it reached U$450 per ton and then began to rise to current values, reaching even U$1000 per thousand kilos of the metal.


The great demand that this metal has in China and in other regions, such as the Middle East, paradise of the construction of hotels, financial and commercial centers, among others, the main cause of its constant increase. Well, in total, the growth of the price of steel during the last year has been close to 75%.

In the air conditioning and refrigeration industry, steel is a fundamental material for the manufacture of equipment, parts and spare parts, so in the current scenario it is not unreasonable to think about the implementation of alternative materials, because the material is replaceable in those parts that do not affect the structural rigidity of the product and that do not lead to excessive vibration. To achieve such substitution, companies must invest more in research and development, thus generating new technologies and materials for the manufacture of equipment. For example, it is possible to look for alternative metals that may be cheaper such as aluminum or zinc. The former is currently being widely used in motor winding, as an alternative to copper. Another option would be cost reduction through improved manufacturing processes.

Another option raised by the experts consulted in AC/R Latin America, is the replacement of steel by composite materials, similar to plastic; which is already beginning to be implemented in the most modern equipment with good results because they reduce vibrations and are anticorrosive, in addition to other advantages; although at the time they were more expensive, today the values of using them are lower than if steel were chosen.

The current situation leads the industry to look for options in the face of the realities of the region, in order to remain sustainable companies, without affecting the end user too much and also maintaining the quality of the products.

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