2021 FEIBP AGM: Raw Materials Turmoil

2021 FEIBP AGM Emphasizes Raw Materials Turmoil

By Katharina Goldbeck-Hörz

The 2021 FEIBP Virtual AGM was held on October 21, 2021, and opening comments indicated there was positive feedback on the 2020 virtual AGM but participants also emphasized the value of in-person events for exchanging views andnetworking. With that in mind, all attendees are eager to attend the 2022 FEIBP Congress which is once again set for Prague, Czech Republic, September 21-24, 2021.

The central theme for the 2021 meeting was the turmoil surrounding the raw materials markets with the official report noting that covered everything from synthetics to timber and aluminum. Adding to that frustration, many speakers and attendees commented on rapidly escalating transport and freight costs. Additional topics covered during the virtual AGM included the following:

EUROPEAN RESHORING

This discussion posed the question of whether or not reshoring will be temporary or the trend going forward. The “produce and buy local” movement takes on a new significance based on the current issues with transport and freight costs, and trade disruptions affecting delivery times. Naturally, this is leading companies to look toward suppliers nearer to their location.

Urte Rietdorf

SUSTAINABILITY

The carbon footprint of products in the industry can be enhanced and if so that would improve global competitiveness. It requires a common European industry approach and the FEIBP can be instrumental in facilitating industry cooperation in the areas of research and public relations.

WORKFORCE

Labor concerns were noted and in particular problems in finding younger workers. It has been observed that companies have difficulties in finding good personnel. There was hope that better use of social media could help in attracting more workers to the industry.

WEBSITE REDESIGN

A new FEIBP website is under construction and a presentation of the new look and feel was presented at the general assembly, but there is still fine-tuning to be done to the new site and no launch date was indicated.

FEIBP LEADERSHIP

Current FEIPB President Andrew McIlroy will be heavily involved in the organization of the FEIBP 2023 Congress in Belfast, Northern Ireland and with that in mind the FEIBP Board proposed to extend his presidency through to the conclusion of the event. Future President Alessandro Acquaderni has targeted future congresses for Italy and Spain under his Presidency. Andrea Acquaderni stepped down as FEIBP Treasurer, and the FEIBP board proposed to elect Peter Brunner (Ebnat AG, Switzerland) as successor. The moves were unanimously approved.

RAW MATERIALS REPORTS

Market reports were delivered on Steel Wire (Holger Kruse, Gustav Wolf GmbH), Vegetable Fibers (Urte Rietdorf, Friedrich Platt), Bristle (Reinhold Hoerz, DKSH), Fine Hair (Mark Samuel, Mark Samuel Trading) and Synthetics (Andrew McIlroy, Perlon). The reports were made exclusively available to FEIBP members through email.

MARKET COMMENTS

VEGETABLE FIBERS

Plant fiber supply is currently relatively stable compared to other products. But climate changes continue to have an increasing impact on the quality and quantity of raw materials. Extreme events such as droughts, hurricanes or long periods of rain affect plant growth in the medium term. Apart from this development, as in all sectors, the transport costs for containers have literally exploded this year, which is clearly reflected in the procurement costs.

–Urte Rietdorf (Friedrich Platt GmbH)

SYNTHETICS

Throughout the whole of 2021, we have experienced difficulty in securing the volumes of raw material we required to maintain the production level needed to supply all of our customers. After a period of improved availability throughout the summer months, supply has again become an issue since September with suppliers now using the sharp increases in energy, packaging and freight costs to further increase pricing. All prices quoted are non-negotiable which leaves filament suppliers with no option but to pass these costs further on down the supply chain. It is likely that the energy cost argument will be heard more and more over the coming months and this is likely to push costs for monofilament and injectionmolded product even higher as both extrusion and molding processes are energy-intensive.

–Andrew McIlroy (Perlon GmbH)

Reinhold Hörz

BRISTLES

The procurement of top-quality pig bristles is becoming increasingly difficult. The quantitative decline in raw materials is not the only challenge. The breeding farms in China, the country of origin, are changing their animal husbandry requirements. Hundreds of “modern” pigs are bred for meat production in large-scale bunkhouses. They grow for only a short time, and they are naked, almost completely hairless. This means that we are even more dependent on the supply from the mountain farmers and their classical breeding methods. Fortunately, we can still find them and supply our demanding customers. However, we must clearly see that for the huge field and high volume demand of brush production, the bristle as such will play an increasingly minor role. We are increasingly only able to meet the high demand in the market satisfactorily with high-quality blends with bristle content (BSHP Bristle Synthetic High Pickup) and HIB (High Imitation Bristle) made of pure plastic. Another issue is the explosive price development due to high freight costs, also influenced by a lack of shipping capacity, price increases in sea freight rates and container congestion in international ports. In view of the shortage of raw materials, I recommend reconsidering the just-in-time delivery method that has been propagated so far. Traditional warehousing or stockpiling may be a wise solution for secure delivery capability in the future that should be considered.

–Reinhold Hörz (DKSH Switzerland Ltd)

FINE HAIR

We have had another exciting year in the world of fine hair with prices for sable hitting unprecedented levels. To give you some idea of the increases here are some comparisons: In 2017, Chinese dressed sable cost on average $2,500. In 2020, that was $4,500 and today it’s $10,000. For European dressed sable, it has gone from $5,000 to $15,000. And if you use longer lengths, you won’t get much change out of $18,000! You would have thought somebody is vastly profiteering from these enormous increases but unfortunately it’s not us as we have struggled to get enough stock over the past few years. As with every boom, a bust will presumably follow, but it’s hard to know when and I’m not at all sure we’ll see much of a decline. Demand has slowed as prices have risen and brushmakers can find substitute hairs for most artist and cosmetic brushes, but for certain applications sable is irreplaceable and demand continues to outstrip supply. The supply is limited because of lack of demand for furs and various restrictions in trade in animal byproducts in China. Prices are also kept high because of the demand in China for calligraphy brushes. Other fine hair prices are also rising, notably, squirrel hair has increased 20-30% this year. Prices for other hairs such as pony, goat and ox are all rising, even though demand has dropped drastically because dressing factories are closing and labor is hard to find.

–Mark Samuel (Mark Samuel Trading Co.Ltd.)