Oil above 100 $: what it means for flat glass prices

With the Strait of Hormuz crisis, Brent crude has risen above 100 dollars in recent days. For a flat glass buyer, the question is simple: will my next containers cost more? Here is what is really moving, and what you can do right now.

Why energy matters so much for glass

Flat glass is made in furnaces running day and night at over 1,500 °C. Energy, mainly gas, is one of a producer’s largest costs. When energy prices rise for a long period, glass prices usually follow, with a delay of a few weeks or months.

What is already moving: transport

Fuel surcharges: shipping lines adjust their fuel surcharges when oil rises.
Gulf: war-risk surcharges linked to Hormuz come on top of fuel surcharges.
Elsewhere: for now, the general drop in freight rates partly offsets the rise in fuel costs.

How to secure your next purchases

Get your needs for the next three months priced now, before any increases.
Ask for a firm price with a clear validity period.
Group your references in one mixed container to share the freight and surcharges.
Think of Low-E and solar-control glass: when energy is expensive, your customers want to cut air-conditioning costs.

Our position

Our prices remain factory prices, sent within 24 hours, with freight and each surcharge on separate lines. We cannot promise that prices will not move, but we warn you as soon as an increase is announced, so you can order before it applies.