Rumors? - Page 3

06-28-2004, 04:45 AM

On Mon, 28 Jun 2004 10:57:50 +0100, "Just zis Guy, you know?"
<[Only registered and activated users can see links. ]> wrote:

>On Sun, 27 Jun 2004 21:16:22 -0500, "Thomps" <[Only registered and activated users can see links. ]> wrote
>in message <[Only registered and activated users can see links. ]>:
>
>>Why do I keep hearing/reading about imminent price hikes on bikes and/or
>>components?
>
>Because it's likely true? Just guessing. There is a steel shortage
>in Taiwan - they've even taken to stealing drain covers.

I'm in the outsourcing business, and I haven't seen anyone doing that
in Taiwan. However, in China, I did see a foundry scrap heap and guys
were cutting up old steam heat radiators, car parts, sheet metal
cabinets, etc., anything and everything - melting them for castings.

Here, I put a pic I took of that scrap heap on my site so you can see
it:

http://www.asiancastings.com/images/scrap_heap.jpg

Steel was going up some time ago. But recently I have not had any
suppliers give me a raw materials cost increase.

Michael J. Klein [Only registered and activated users can see links. ]
Dasi Jen, Taoyuan Hsien, Taiwan, ROC
Please replace mousepotato with asiancastings
---------------------------------------------

06-28-2004, 05:15 AM

I rather doubt that an increase in metal prices would noticeably affect the
price of a bicycle. Steel is sold by the ton and I checked the price for
carbon steel and it goes at less then $300 per ton. Now that isn't cromolley
but a bike frame weighs what? 4 lbs? So you have about $.60 in the price of
steel in a bike. Even if the price of steel goes up 10 fold, that is only
going to add about $6 to the price of the bike.

If the price of bikes goes up, it will be other things that are acting then the
price of metals.

06-28-2004, 05:15 AM

I rather doubt that an increase in metal prices would noticeably affect the
price of a bicycle. Steel is sold by the ton and I checked the price for
carbon steel and it goes at less then $300 per ton. Now that isn't cromolley
but a bike frame weighs what? 4 lbs? So you have about $.60 in the price of
steel in a bike. Even if the price of steel goes up 10 fold, that is only
going to add about $6 to the price of the bike.

If the price of bikes goes up, it will be other things that are acting then the
price of metals.

06-28-2004, 05:15 AM

I rather doubt that an increase in metal prices would noticeably affect the
price of a bicycle. Steel is sold by the ton and I checked the price for
carbon steel and it goes at less then $300 per ton. Now that isn't cromolley
but a bike frame weighs what? 4 lbs? So you have about $.60 in the price of
steel in a bike. Even if the price of steel goes up 10 fold, that is only
going to add about $6 to the price of the bike.

If the price of bikes goes up, it will be other things that are acting then the
price of metals.

06-28-2004, 05:15 AM

I rather doubt that an increase in metal prices would noticeably affect the
price of a bicycle. Steel is sold by the ton and I checked the price for
carbon steel and it goes at less then $300 per ton. Now that isn't cromolley
but a bike frame weighs what? 4 lbs? So you have about $.60 in the price of
steel in a bike. Even if the price of steel goes up 10 fold, that is only
going to add about $6 to the price of the bike.

If the price of bikes goes up, it will be other things that are acting then the
price of metals.

06-28-2004, 05:15 AM

I rather doubt that an increase in metal prices would noticeably affect the
price of a bicycle. Steel is sold by the ton and I checked the price for
carbon steel and it goes at less then $300 per ton. Now that isn't cromolley
but a bike frame weighs what? 4 lbs? So you have about $.60 in the price of
steel in a bike. Even if the price of steel goes up 10 fold, that is only
going to add about $6 to the price of the bike.

If the price of bikes goes up, it will be other things that are acting then the
price of metals.

06-28-2004, 10:51 PM

> To those of you in the know, or even those who enjoy speculating:
>
> Why do I keep hearing/reading about imminent price hikes on bikes and/or
> components?
> Are they true?
> I'd like to buy new, and am wondering whether to wait until this winter,
or
> if I'd be wiser to act sooner.
>
> Thanks all,

The bicycle industry is desperately *trying* to increase prices, since most
of it's awash in red ink. That's nothing new, and prices have been held
down by an oversupply situation. However, wholesale prices from OEMs have,
for the first time, been ticking upward significantly. Most of this is due
to increased demands from China, which is beginning to make itself known as
a very large (and rapidly-growing) consumer of raw materials. Some feel
that the demand from China will have far-reaching inflationary effects
throughout most industries. However, much of the increased costs from China
will be offset as production is still far cheaper there than elsewhere, so
as more of it moves from higher-priced locales to China, prices are kept
down (despite the fact that Chinese-manufactured goods are going up).

But none of this is all that relevant to someone wanting a new bike. If you
have a need for one now, you'll get to make use of it for several months of
great summer riding. That adds significant value to the don't-wait side of
the equation!

--Mike-- Chain Reaction Bicycles
[Only registered and activated users can see links. ]

06-28-2004, 10:51 PM

> To those of you in the know, or even those who enjoy speculating:
>
> Why do I keep hearing/reading about imminent price hikes on bikes and/or
> components?
> Are they true?
> I'd like to buy new, and am wondering whether to wait until this winter,
or
> if I'd be wiser to act sooner.
>
> Thanks all,

The bicycle industry is desperately *trying* to increase prices, since most
of it's awash in red ink. That's nothing new, and prices have been held
down by an oversupply situation. However, wholesale prices from OEMs have,
for the first time, been ticking upward significantly. Most of this is due
to increased demands from China, which is beginning to make itself known as
a very large (and rapidly-growing) consumer of raw materials. Some feel
that the demand from China will have far-reaching inflationary effects
throughout most industries. However, much of the increased costs from China
will be offset as production is still far cheaper there than elsewhere, so
as more of it moves from higher-priced locales to China, prices are kept
down (despite the fact that Chinese-manufactured goods are going up).

But none of this is all that relevant to someone wanting a new bike. If you
have a need for one now, you'll get to make use of it for several months of
great summer riding. That adds significant value to the don't-wait side of
the equation!

--Mike-- Chain Reaction Bicycles
[Only registered and activated users can see links. ]

06-28-2004, 10:51 PM

> To those of you in the know, or even those who enjoy speculating:
>
> Why do I keep hearing/reading about imminent price hikes on bikes and/or
> components?
> Are they true?
> I'd like to buy new, and am wondering whether to wait until this winter,
or
> if I'd be wiser to act sooner.
>
> Thanks all,

The bicycle industry is desperately *trying* to increase prices, since most
of it's awash in red ink. That's nothing new, and prices have been held
down by an oversupply situation. However, wholesale prices from OEMs have,
for the first time, been ticking upward significantly. Most of this is due
to increased demands from China, which is beginning to make itself known as
a very large (and rapidly-growing) consumer of raw materials. Some feel
that the demand from China will have far-reaching inflationary effects
throughout most industries. However, much of the increased costs from China
will be offset as production is still far cheaper there than elsewhere, so
as more of it moves from higher-priced locales to China, prices are kept
down (despite the fact that Chinese-manufactured goods are going up).

But none of this is all that relevant to someone wanting a new bike. If you
have a need for one now, you'll get to make use of it for several months of
great summer riding. That adds significant value to the don't-wait side of
the equation!

--Mike-- Chain Reaction Bicycles
[Only registered and activated users can see links. ]

06-28-2004, 10:51 PM

> To those of you in the know, or even those who enjoy speculating:
>
> Why do I keep hearing/reading about imminent price hikes on bikes and/or
> components?
> Are they true?
> I'd like to buy new, and am wondering whether to wait until this winter,
or
> if I'd be wiser to act sooner.
>
> Thanks all,

The bicycle industry is desperately *trying* to increase prices, since most
of it's awash in red ink. That's nothing new, and prices have been held
down by an oversupply situation. However, wholesale prices from OEMs have,
for the first time, been ticking upward significantly. Most of this is due
to increased demands from China, which is beginning to make itself known as
a very large (and rapidly-growing) consumer of raw materials. Some feel
that the demand from China will have far-reaching inflationary effects
throughout most industries. However, much of the increased costs from China
will be offset as production is still far cheaper there than elsewhere, so
as more of it moves from higher-priced locales to China, prices are kept
down (despite the fact that Chinese-manufactured goods are going up).

But none of this is all that relevant to someone wanting a new bike. If you
have a need for one now, you'll get to make use of it for several months of
great summer riding. That adds significant value to the don't-wait side of
the equation!

--Mike-- Chain Reaction Bicycles
[Only registered and activated users can see links. ]