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Rising metal costs means bike price hikes - BikeBiz

Rising metal costs means bike price hikes

Surging demand in China for metal of all types and the weakness of the dollar is leading to fast price rises for steel, aluminium, titanium and other metals. Mark Lynskey, CEO of the American Bicycle Group in Chattanooga, Tenn., reckons bike prices will have to rise by 20 percent.
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An article in the business section of the New York Times says all industries which rely on metals are being impacted by the cost increases.

"Analysts ascribe the upward pressure on the price of materials to surging demand in China, abetted by a pickup in economic growth in the United States and by the weakness of the dollar. International metal prices are typically set in dollars, and foreign producers must raise dollar prices to cover their costs when the currency weakens.

Lynskey was quoted in the NYT article:

"Short term, we may have to absorb some of the increases. But in the long term, it will have to pass through to the consumer."

http://www.nytimes.com/.../26metal.html?ex=1078376400&en=10092dfe9265c394&ei=5062

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