Probat raises prices 4.5% as cost of steel soars
Coffee roaster manufacturing giant Probat has announced that it is raising prices, in part to offset rising costs for steel and other raw materials used in manufacturing.
The 4.5% net increase in the price of all Probat machines, slated for July 1, was announced earlier this month by the Probat Group global headquarters in Emmerich, Germany.
âThe price adjustment is driven by significant price increases in the supply of steel, sheet metal and components in particular, which Probat is currently experiencing,â the company said. âIn addition, the company faces a tight supply of raw materials and logistics needed to manufacture and deliver its own products. He therefore feels obligated to inform his customers that he is increasing his net selling prices by 4.5%. These increases will be implemented through list price changes and are necessary to offset this significant increase in costs. “
For a myriad of reasons – not the least of which are post-pandemic market dynamics and the Trump-era tariffs imposed on Chinese steel imports into the United States – the price of China’s commodities steel reached unprecedented heights this spring.
“Rising steel prices in particular and a strong economy are putting pressure on costs also in the coffee industry,” the German group said. âProbat is working diligently to further optimize its cost structure and operational processes.â
Nick Brown is the editor of the Daily Coffee News by Roast Magazine. Your comments and story ideas are welcome at publisher (at) dailycoffeenews.com, or see the “About Us” page for contact information.