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Products and solutions, 2007-10-01, 10:00 AM

Alloy surcharge: Stainless group makes pricing more market-responsive

The operating companies within ThyssenKrupp Stainless AG are changing the way they calculate alloy surcharges with immediate effect. The large fluctuations in prices, especially for nickel as one of the main alloying elements for stainless steels, have shown that it is necessary to link alloy surcharges more closely to raw material prices. The new pricing basis for stainless steel flat products will apply from November for ThyssenKrupp Nirosta (Germany) and ThyssenKrupp Acciai Speciali Terni in Italy. The revised pricing system is based on a more timely calculation and publication of alloy surcharges. This will allow customers to plan their purchasing realistically based on current developments on the raw material markets.

Alloying elements, mainly nickel, chromium and molybdenum, are used in the production of stainless steel. The alloy surcharge reflects the costs of these metals once they exceed a certain price. The alloy surcharge is added to the base price.

Until now the published alloy surcharge has been based on average raw material prices two and three months in the past. From now on it will be based on price movements in the 30 days before the 20th of the previous month. Compared with the previous calculation method, the only change is the alloying element cost reference period. All other parameters remain unchanged. In the future, the alloy surcharge will be announced before the month in which it applies. As a result the calculation will be much more current and will reflect market movements more closely.

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