I think that material prices will stay unusually high during the next quarter, for the fall in value of the US Dollar makes it very hard for any company to bring in Steel from other countries.  Also there will be demands, from other countries to purchase Steel and other products from the US.

I also wanted to add a word of caution to all the people who buy products from China.  I heard of several people receiving products not to specification.   In some cases it has cost these people double for they had to buy replacement parts, and in one case the person had to pay a daily fine for the project not being completed on time.

We have products that can support all of your needs, and we can provide you with mill certifications on all of your orders.

If China can send lead based products on kids toys what would they do to your product to make it less expensive, and what would your nightmare look like if that were to happen,  As my dad would say stop being “penny wise and pound foolish”.

Please call us for all of your roll forming needs

Last week, American Metal Market published an important article regarding stainless prices in the month of February. We’d like to inform our trusted customers and blog readers of specific raw material price increases:

News Summary
The article states that large mills and distributors are increasing stainless steel prices in advance of stainless surcharges, which begin in March.  Since manufacturers have been aware of these upcoming surcharges, many “stocked up” in January.  Distributors fear they might run out of stainless inventories completely if they do not increase prices to allow for this surcharge.

Surcharge Expectations
Sources say the March surcharge on Type 304 stainless could increase by between 10 and 15 cents (up from 73 cents per pound in February), while Type 316 stainless could go up to $1.25 per pound from $1.06.  Additionally, distributors have increased flat-rolled stainless stock prices by around 5 cents in past weeks (since January 28).  When surcharges increase, distributors raise prices to cover their own bottom line.

Effect on Roller Die, competitors
Many manufacturers who purchase stainless are doing so conservatively, and not in a way that would deplete supplies by March (as the article first suggests).  The article states that large purchases have been mainly put on hold as prices rise, and manufacturers are buying in smaller quantities.  States a southern service center manager: “Real demand is still a little wishy-washy.”

Bottom Line
What is not “wishy-washy” is Roller Die’s commitment to providing top-quality stainless and flat-rolled steel products at the lowest possible prices.  Our huge inventory of free tooling enables us to succeed in times of rising steel costs, offsetting raw materials costs with lean manufacturing principles.  Remain confident that we will continue producing steel end products regardless of surcharge fluctuations.  We continue to watch this surcharge issue closely through March.