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Thread: Will price of tinnes drop

  1. #1

    Will price of tinnes drop

    In listening to, as well as reading about, the closure of some Alcoa plants in Australia I see the world price of aluminium has dropped substantially. I cannot recall exactly, but a drop from somewhere in the region of $3500 a tonne to $1800 a tonne has occurred over recent years.
    Given this large reduction, I might have thought that boat prices may have reduced somewhat. However it is my perception that no such thing has occurred. Maybe I am wrong in this regard and I am sure if this is the case, some on here will let me know!!!
    I am not in the market for a new boat, but like a lot of people, just keep an eye on prices to see what is around and what the market is about. I do not see a drop in some of the boats that I like, and in fact this seem to have increased.

    Regardless of base material of prices, maybe the economy will shortly determine a reduction in any case. The job situation many areas does not seem at all good and when things are crook, the things that go are the "extras", such as a boat.

  2. #2

    Re: Will price of tinnes drop

    Unfortunately recently the Aus dollar has gone down too so any materials imported are going to cost more. When our dollar was high so was the price of Ali so as I see it the prices won't be changing much.
    Remember to always log on before heading offshore.

  3. #3

    Re: Will price of tinnes drop

    I actually thought that we had plants here in Australia that processed the bauxite into an end product. Maybe not sheet stuff though, or formed sections, which is what boat builders will use.
    Maybe someone here can enlighten us on this aspect.

  4. #4

    Re: Will price of tinnes drop

    I can tell you ally tube/sheet keeps going up all the time ...

  5. #5

    Re: Will price of tinnes drop

    prices don't go down in Australia, its simple economics. Price go down, tax go up.

  6. #6

    Re: Will price of tinnes drop

    I don't think the price of tiniest will drop at all.
    What will happen is the manufacturer's will pay less for the materials and the saving's will go into their pocket's.
    I'm fairly certain when business's can save a buck on their material's bill they don't go giving the profit's away.
    That's my opinion anyhow.
    Darren

  7. #7

    Re: Will price of tinnes drop

    I agree with Darren Mc, I wouldn't expect reductions in tinny prices.

    However we might see a reduction in the rate of increase...
    | Savage Kestral with Evinrude 9.9 --> Stacer 3.9 with Yamaha 15 --> Polycraft 4.55 CC with Honda 50 --> Ally Craft Reel Mate 4.25 with Yamaha 3 cylinder 30 horse --> Hmmm what next? |

  8. #8

    Re: Will price of tinnes drop

    I've bought plant and machinery for year's, in all that time prices have never dropped

  9. #9

    Re: Will price of tinnes drop

    Never going to happen.

    Actually, I can only see that a dropping Aussie dollar will result in an increase in prices (and not only boats) because importing costs will become more expensive.

  10. #10

    Re: Will price of tinnes drop

    Companies would be mad to drop their prices. Prices are not based on costs, they are based on what the consumer is prepared to pay for the finished product

  11. #11

    Re: Will price of tinnes drop

    I cannot recall exactly, but a drop from somewhere in the region of $3500 a tonne to $1800 a tonne has occurred over recent years.
    Given this large reduction, I might have thought that boat prices may have reduced somewhat.
    Aluminum base metal prices have fallen but by the time you turn it to useable raw material and then sheet and then build a boat the actual cost saving would be tiny. 2.5mm aluminium sheet can be bought for around $55 per sqm, say you needed 20 sqm (I don't know if this is the figure) to build a 4.5m boat then the cost of the aluminium would be $1100, if the base price of the aluminium was up 50% then the sheet price (assuming cost to form the sheet remained the same) may only go up by 25%, same boat now has $1375 of aluminium in it. On a boat/trailer/motor package of $20k+ the $275 saving would not be noticeable even if they did reduce the price by the saving.

    Even on your numbers above (which I don't think are correct, perhaps more like a 30% drop?) a 4.5m tinnie with 200kg of aluminium in it would have less than $400 in saving on raw material - 2%.

    Imported componentry and engines are, as a percentage, a larger part of the total cost and those prices are definitely on the rise with the weaker AUD.

    As previously mentioned, prices are only going one way and I don't think it will be down.

  12. #12

    Re: Will price of tinnes drop

    I dont think the prices will drop but do think manufacturers or Boat builders may be reduced due to the reduction in sales in comming years ..Prices for Alloy Boats have reached quite a high due to demand in the upper end market and its not uncommon to pay in excess of $180 K for a good sized platey and more with trimmings etc..
    Patience will also see some good Plateys come on the market as people will have to toss up what has preference, House or Boat???. Unless offcourse the economy gets a boost from somewhere ???.
    Maybe some platey builders can enlighten us more ???...

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