Materials prices are rising

by Podbike | May 28th

Cycling is becoming more popular and the prices for materials are rising. In one of our previous blog posts, we wrote about the extended delivery times for bicycle parts. This one is about the increasing prices for materials. The trigger is the same: COVID-19.

Bicycle instead of bus and train

While the woman in the next seat has successfully pushed her FFP2 mask under her nose, the man behind her courageously blows his nose into a crumpled handkerchief. The bus rumbles around the corner and passengers try to reach for the worn handles above their heads. Some are involuntarily pressed against the murky window panes, others against their sniffling seatmate.

Many people today prefer to avoid such crowded buses, if possible. Instead, they work from home or cycle to work. COVID-19 has driven up the demand for bicycles. For this reason, material prices for bicycle parts are also rising.

First of all, we want to repeat: it makes us happy that more and more people are cycling! But: As a result, delivery times for bicycle parts have lengthened and material prices have risen significantly. In the following we would like to describe the situation in more detail.

Metals in China – Rising prices on materials

Worldwide, the prices for metals have also skyrocketed due to the increased demand. Especially light metals, iron, magnets and the components of electronics have become more expensive. Below you can see a graph. It shows the price development of metals in China over the last few months.

Rising prices of metals in China chart
Rising prices of metals in China.

Material costs are also rising for copper and plastic

Copper is needed for the production of electric motors and electronic circuit boards. Plastic is mainly used for the cladding of vehicles. Oil and gas are used for its production. Below you can see the price development of oil and gas on the stock exchange over the last year.

Rising prices for oil and gas chart
Rising prices for oil and gas have an impact on the prices of plastic that we need.

A small consolation: We don’t need wood

Apart from the increased prices for materials for bicycles and e-bikes, the price of wood has also skyrocketed. It has risen by over 400 percent in one year. Today the price is still at almost 250 percent and rising again. In other words, we can be glad that we don’t need wood for the FRIKAR e-bike.

Nonetheless: the cost of materials is rising and that has a significant impact on the market. In short: The production of e-bikes is becoming more expensive worldwide. We at Podbike will not be spared from this either. As soon as we can estimate the price implications, we will inform you. Until then, stay healthy and keep cycling a lot! 🙂

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These blog posts might also interest you:

Pricing of FRIKAR E-Bike for Europe

2020: A never-ending roller coaster

Reducing the Footprint of Frikar e-bike