According to Dimitar Beleliev, PhD, all last year’s contracted orders are operating at a loss.

Prices of key industrial and precious metals, such as copper, aluminum, silver, and gold, have reached unprecedented highs.

This price shock is putting enormous pressure on local manufacturers of cables, transformers, electrical equipment, and renewable energy systems.

“Indeed, metals and gold are not only a store of value but also raw materials widely used in electrical engineering and electronics. Over the past year, their prices have risen dramatically — some up to three times, others by 50%. All of this has a negative impact on the industry,” said Dimitar Beleliev, PhD, Chairman of the Board of the Bulgarian Association of Electrical Engineering and Electronics (BASEL), in Bulgaria Morning.

Why prices are rising
He noted that transport costs are not the main driver but highlighted several factors behind the price increases.

“There are three main reasons. First, we all see what is happening worldwide, which drives prices up. Second, electrical engineering and electronics have become leading sectors globally. Third, over the past decades, insufficient investments have been made in this type of business worldwide,” Beleliev explained to Bulgaria ON AIR.

Risk of operating at a loss
As an example, the BASEL chairman cited transformer production, which takes about a year and a half: “If you signed a contract last year and six months later have to purchase materials at higher metal prices, you immediately start operating at a loss.”

Competition and lack of political support
According to Beleliev, Bulgaria’s electrical industry is the country’s largest exporter.

“Our analysis shows that over 60% of public tenders involve deliveries from third countries. In those countries, we cannot compete. In this struggle, we at least have the opportunity to support European-made products, for example through EU programs. But there is no political will,” the guest explained.

Beleliev believes that the Bulgarian electrical industry is under significant pressure.

“At the moment, all orders placed last year with contracts included are running at a loss,” he summarized.

Source: https://www.bgonair.bg/a/36-sutreshen-blok/408872-rekordniyat-skok-v-tsenite-na-metalite-e-tezhak-udar-po-balgarskata-elektroindustriya