Plunging Material Prices at Taipei Show

TAIPEI, Taiwan – What will be the leading topic at this year’s Taipei Int’l Cycle Show? Since the economic situation has changed drastically, also material prices changed. Last year at the start of the Taipei Show, Bike Europe reported on upcoming price increases. This year it’s the other way around.

Despite the fact that the price of steel remains relatively high ; prices of other raw materials such as copper, zinc and natural rubber have been dropping across the board. Leading Taiwan assemblers Giant and Merida are working to head off a “period of adjustment” expected in 2009 instead of simply requesting price reductions from parts makers.

Despite price reductions in other materials however, the price of steel shows no signs of dropping. In contrast to stainless steel plate which has softened by more than 10% over the past months, thick steel plate, cold-rolled thin steel plate and other materials have soared by 40 to 70% compared to their average prices in 2007.

Base metals such as aluminium, copper, zinc and lead are dropping across the board, with no signs of slowing. Aluminium lost 1/3 of its value in one year and copper prices dropped by 25%. Zinc has even decreased by more than a half since 2007.