Stainless steel base price push drawing flak
Jun 30, 2014 | 02:46 PM
| Rey Mashayekhi
NEW YORK Domestic stainless mills appear to be pushing to change decade-old published base prices, a sign of market strength, but the move has some distributors up in arms.
The domestic market is on course for its third industrywide base price increase in four months in July. And while prices have risen steadily over the course of the year, the method that mills are employingincreasing alloy material base prices rather than the typical discount reductionis drawing flak.
"I have mill base price pages dating back to the mid-90s; (there have been) no changes in the past 20 years. This would be a bit of a stretch if all followed, since the market price has been set by discount points the past 30 years," one distributor source said.
"This is not a change of discount," a second distributor source said. "They are actually changing the base price of metal. ... It doesnt seem like a big deal, (but) its a very big deal. It changes the price of metal forever3 (cents), almost 4 cents (per pound)."....
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