Crucible plans quarterly stainless bar surcharges
Dec 17, 2010 | 01:11 PM
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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." ....
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