Phosphate raw material:
Price explosion effects Minimax
The price development on the raw materials markets is of considerable importance to Minimax Mobile Services as it makes a significant budgetary difference to the production costs of fire extinguishers. The last few years have seen the steel, brass and aluminium prices in particular put various branches under a heavy financial strain. Steel panels are required in the production of extinguishing agent containers. The instruments of the extinguishers are made of brass and aluminium. Phosphate, however, is the most important component in many extinguishing agents such as, for example, ABC powder. Alongside the quality of the fire extinguisher itself, the quality of the extinguishing agent also contributes to how successful extinguishing actually is. "Ensuring safety by continuing to have the highest standards of quality remains our uncompromising mission," says Felix Colsman, Managing Director of Minimax Mobile Services GmbH & Co. KG.
The majority (over 90 per cent) of phosphate processed worldwide is used in the production of fertiliser. The demand for fertiliser is rising sharply due to the increasing need for foods and renewable raw materials in energy production, such as maize and soya. As a result, the phosphate price has more than doubled since summer 2007. The severe weather conditions experienced in many parts of Asia in February and March of this year means that many large agricultural areas won’t be included in the 2008 harvest. In a move to promote crop production, China, one of the biggest phosphate suppliers in the world, recently introduced an export duty of 35 per cent on phosphate, thereby making the supply to the world market even shorter. The consequence of this is, of course, an increase in phosphate prices.
Minimax Mobile Services GmbH & Co. KG is quite clearly feeling the pinch as well. Colsman goes on to say that "the phosphate market conditions are forcing us into action and in order to continue providing the highest quality possible, an increase in the price of our fire extinguishers is unfortunately unavoidable".