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NOTICE January 4, 2010
Attn.: General Management/Purchasing Agents/Buyers Subject: Nickel Surcharge Prices for 2010 Resistance alloys and other Stainless Steel alloys.
Until further notice: All quotes are valid for only 30 days. Prices for 2010 will continue to be on a month to month basis. Shortages of material and longer lead times continue to be the market for 2010. Nickel Surcharges will be quoted as Cost in effect. Base prices have increased 5% to 10% depending on the item and quantity. Electrolytic nickel (melting grade) used in manufacture of resistance alloys, and stainless steel alloys has increased significantly $8.50 per pound on the London Metal Exchange. The base price used by the steel/alloy mills to produce these alloys has been about $3.50 per pound to calculate selling prices, then a nickel surcharge add-on to cover the difference between their base cost, and the actual purchase cost on an average monthly basis. Most alloy mills have increased price on resistance alloys 5% to 10%. Escalating raw material costs will effect most businesses. National Element, Inc. is forced to pass on these higher material costs.
The nickel surcharge for heating elements 80%ni-20%cr has climbed from $0.24 per pound January 2003 to aproximately $4.63 per lb in January 2010. The alloy mills other stainless steel suppliers and warehouses pass this nickel surcharge on to the customer. These mills and producers will be increasing prices of nickel alloys and stainless steel to reflect current market conditions.
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