Changes to the Alloy Surcharge Model for Seamless Tube Products are Announced By Sandvik Materials Technology


Sandvik Materials Technology is to reduce the time lag on
its alloy surcharge model for seamless tubular products.

The change will come into effect from January 1st, 2009
when the rates from November 16th to December 15th, 2008
will be debited. The new formula will be based on the
average alloying costs for one month.

Sandvik established the current European alloy surcharge
model for its stainless steel products in 1993 in order
to better reflect fluctuating alloy material prices. Once
calculated, the alloy surcharge is added to the base
price of stainless steel. The source of the individual
alloy rate is taken from Metal Bulletin's, LME, average
'midday' rate.

By reducing the time lag Sandvik believes it will make
the alloy surcharge model more transparent and a closer
reflection of current market price trends.

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