I have been told today that Pilkington, Saint-Gobain and the rest of the glass cartel are ready to either ‘raise prices or they have done already.’
Oil is down, petrol and diesel prices have come down, operating costs haven’t shot up over the past few months as far as I’m aware, so why the sudden rise in costs? The way I see it, it’s the glass cartel flexing it’s muscles, demonstrating that it is free to raise prices whenever they like without fear of repercussions.
A few months ago, the EU imposed a massive fine on companies proven to be involved in a price fixing scam. The generally accepted narrative of the major glass manufacturers is that they also operate in a cartel-like fashion, so why is it that the powers that investigated the hardware companies haven’t found time to investigate the major glass companies?
Look at what happens when one manufacturer increases prices. The rest follow on a weekly basis over the next few week. Usually Pilks puts their up first, then the rest follow. Normally, a company putting it’s prices up would create an advantage for it’s competitors by being able to keep their costs the same if possible, giving them the edge. But no, all the other major players do the same. Presumably knowing the industry HAS TO buy glass from somewhere, so if everyone puts their prices up, there’s nothing the industry can do about it. For me, this is totally wrong – if this is true of course!
I don’t see a pressing need for a price rise. The economy has flattened out somewhat, inflation has eased to 2.8% when it was much higher, fuel has stabilised and come down slightly and recently our conservatory roof manufacturer actually decreased it’s glass roof prices. So where this rumoured price increase is coming from I do not know. What I am fairly sure of is that the major glass producers could do with a few calls from the European Commission to see if there is any foul play.
FYI ….. a while ago but …. AGC Flat Glass Europe (Glaverbel) is one of the four glass manufacturers who were fined a total of 486.9 million euros ($717.5 million; £348.2m) by the European Commission on 28 Nov 2007 for illegally co-coordinating price rises.[1] The European Commission said the firm had raised or stabilised prices in 2004 and 2005 through illicit contacts with the other principal glass manufacturers: Guardian of the US, Pilkington, which is the UK unit of Nippon Sheet Glass and Saint-Gobain of France; who between them they control 80% of Europe’s market for flat glass.[2] Neelie Kroes,… Read more »
Thanks for that Simon!
I never realised how large that fine was! Deserved though. Shouldn’t have behaved in such an immoral manner. But the pattern of price rises since then still makes it look like coordinated price increases.
Thanks for your comment!
Just like the Energy Surcharge why is it the Headline rate the same from all ?.
Do they all pay the same energy cost and re-new contracts at same date ?.
That said glass products are to cheap, no real price increase in 20 years on stock float glass infact most products have come down.
They were also warned not to increase prices to enable them to pay the fines.[see Simon above]
Cartels are still outlawed as is price fixing and monopolies.
Shame Pilks don’t have more competition in the u.k.