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.