NEW YORK PMX Industries
Inc. will be adding a copper surcharge to its products after a
wall slide at Kennecott Utah Copper LLCs Bingham Canyon
Mine forced it to locate alternative sources of cathode.
Kennecott, PMXs main
supplier of cathode, declared force majeure earlier
this month after the wall slide forced the company to suspend
mining at Bingham Canyon (
amm.com, April 16).
Kennecott does not anticipate
being able to make shipments of copper cathode beyond May.
"Thus, the company will be
adding a 7-cent-per-pound copper surcharge effective July 1,"
Kennecott, a division of
London-based Rio Tinto Plc, historically has supplied PMX with
almost all the copper cathode it needs, the company said.
"Since the remaining U.S. mines
were already booked through the end of 2013, the company must
rely on foreign supply sources to meet its customer
obligations," PMX said.
The Cedar Rapids, Iowa-based
alloy maker has successfully negotiated new copper cathode
contracts with multiple suppliers, but at an increased cost, it
PMX also will increase
fabrication pricing, which it was in the process of reviewing
when the Kennecott outage occurred, it said.
"The company is subject to
continued cost pressuresincluding wages, health care,
utilities and transportationwhich consistently erode
stagnant fabrication margins," PMX said.
While this issue is separate
from cathode supply, it is equally challenging, the company
said. "Therefore, PMX will also be increasing fabrication
pricing between 5 and 8 percent starting with July 1
The move follows increases by
Louisville, Ky.-based Olin Brass Inc. (
amm.com, April 15) and Buffalo, N.Y.-based Aurubis
Buffalo Inc. (
amm.com, April 23).
PMX produces a range of copper and brass alloys, including
high-precision connector alloys and microbial copper