As you are probably aware, the price of nickel has skyrocketed in 2022. Driven largely by battery manufacturing, the EV sector and stainless steel production, nickel demand has ramped up in recent years, with 2021 seeing 17% demand growth. Combine that with supply disruption and inflationary pressure and the result has been wild price fluctuations and 50% price increase over the past 12 months. We've been able to weather that storm because we bought much of our nickel strip in 2021, only needing to purchase a little bit in the past month or so. This has meant that we've been able to keep our nickel prices well below that of our competitors. In fact, we've received messages asking whether it was nickel-plated steel because the price was suspiciously low. Rest assured that we have an established relationship with a reputable supplier, and all of our nickel strip is certified 99.9% pure.
Unfortunately, the time has come that we must raise prices in order to remain profitable. The good news is that metal producers expect supply to soon outpace demand and the US is actively considering resetting tariffs, both of which will greatly reduce our costs. When that happens, you can rest assured that we will lower our prices accordingly.
As always, our customers are who keep the lights on and we will continue doing our best to minimize your cost.