Flash news 1 2006

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Two very important international events are just around the corner. The first, the China Glass Exhibition, is to be held in Beijing from 25 to 28 April 2006; the second, Glass South America 2006, in São Paulo from 4 to 6 May. Fenzi will naturally attend both events as they relate to two markets of high strategic importance for the Tribiano group. The Chinese market is in fact expanding, to the extent that Fenzi is about to launch local production, initially of Duralux mirror-backing paints alone, at the recently built plant around one hundred kilometres from Shanghai. Equally worthy of note is the South American market, even if the figures are obviously different. Brazil in particular has to be seen as a country enjoying full expansion, with already a strong and long-established Fenzi presence in the area with Fenzi Argentina, a commercial facility that covers the whole of South America.



The problems on the world metals market are mounting. During the second half of 2005 and also in early 2006 the growth trend of the prices of aluminium continued, a remarkable phenomenon if we consider that in six months the steady increases have marked overall growth of over 50%.
The causes for these increases are of course the usual ones, the same as those involved in the price increases of almost all raw materials. The structural causes include the rise in world demand, linked to the explosive growth of developing economies which, for this very reason, have also forced up energy prices (it is a well-known fact that the production of aluminium requires a relatively high consumption of energy). One of the foremost contingent causes is, as always, international speculation, which has further aggravated the situation already reported for all metals and lastly for aluminium, and also for oil and by-products.
The logical upshot is that all industrial products based on aluminium have suffered cost increases. This has also been the case for Alu Pro who has had to adjust the prices of its profiles significantly. What will happen in the near future cannot be predicted for the time being. It does however seem very likely that the phenomenon is still underway and therefore that further rises are to be expected up until the end of the year.

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