Rising steel costs push up Volvo CE prices

VOLVO Construction Equipment have announced that they are to raise the price of their machines and components by 5% globally following sharp increases in their cost base as a result of record global demand for commodities.

Restricted supply and burgeoning demand for steel, especially in China, has lead to the cost of iron ore rising by over 70% on the worldwide markets, resulting in a sharp increase in the price of steel and, consequently, in the production costs of manufacturers of heavy construction equipment.

Volvo CE say the 5% increase in the price of their machines, attachments and parts will offset some of the impact of these rises.

‘Manufacturers of heavy construction equipment are being particularly hard hit by the current record prices of commodities, such as steel, oil, iron ore and rubber,’ explained Scott Hall, executive vice-president of Volvo Construction Equipment.

‘With no sign of commodity prices cooling in the foreseeable future, it has become unavoidable that these costs be offset in the form of a price increase,’ he said.

The price increase will be made across Volvo Construction Equipment’s entire product range and implemented globally.