Crucible opts for quarterly stainless bar surcharges
Dec 17, 2010 | 01:01 PM
Crucible Industries LLC will switch to a quarterly surcharge for its stainless bar products as of Jan. 1, Dan O'Leary, the company's national sales manager, told AMM.
The surcharge will be based on the average raw material costs for October, November and December of this year, while the second-quarter surcharge, beginning in April, will based on costs in January, February and March.
Crucible's December surcharge for Type 304 stainless bar is $1.13 per pound, while Type 316 stands at $1.60 per pound.
Prices for nickel, the biggest driver of costs in the stainless industry, have seen wild swings this year. Three-month nickel averaged $22,990 per tonne in November and $23,864 per tonne in October. The metal slid as low as $17,125 per tonne in February before rising to a yearly high of $26,800 just two months later—a 56.5-percent increase.
The shift will mitigate the impact of such volatility "because it evens out over the three-month period," O'Neal said. "Whenever you have a fluctuation, the average dampens it out." ....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.