NEW YORK GBC Metals LLC, part of Olin Brass Inc., plans to increase prices for its light-guage, narrow-width and specialty finish products beginning with June 28 shipments.
The increases are anywhere from a couple of cents to mid-teens depending on the thickness of the product, Olin Brass vice president of marketing and sales Thomas Werner told AMM April 15.
Olin also plans to increase all reroll product prices 5 cents per pound.
There is significant disparity between the manufacturing cost and the customer conversion charges for light-gauge, narrow-width and specialty finish products, all of which require more processing time and labor than other products, Olin Brass said.
We have concluded that this disparity has existed for decades and is the result of historical pricing grids that do not reflect todays cost differential of producing these products, vice president of marketing and sales Thomas J. Werner said in a statement.
Light-gauge and narrow-width products require more processing steps, more equipment time, more labor, and they incur more supplies and more utility expense. The current pricing structure simply does not reflect these operational costs or the disproportionate impact of inflation on these products.
As a result, Olin Brass has announced new price schedules that reflect fabrication adders applying to all alloys, including 100- and 200-series and high-performance alloys.
The price change affects all original equipment manufacturing commercial customers, as well as supply chain partners such as A.J. Oster LLC and all of Olin Brass downstream businesses.