Why do Surcharges exist on Stainless Steel?
The purpose of the surcharge is offset the rapid increase and fluctuating costs of raw materials included in each individual alloy. The alloy surcharge is comprised of five elements: nickel, chrome, molybdenum, manganese, and iron. All these elements, used in stainless steelmaking, became excessively volatile within the past two decades.
Because of LARGE recent fluctuations – most items will be quoted as + SIE (Surcharges in Effect), as it’s anticipated to see surcharges go up based on nickel increases.
Are Surcharges Governed and Regulated?
There is no governing body to regulate how surcharges are calculated for stainless steel in the US. The surcharges are calculated mill by mill and their formula for calculating the surcharges vary from manufacturer to manufacturer. Most keep their formula private.
What are the current surcharge rates of Stainless Steel alloys?
Surcharges typically change monthly. Most mills publish monthly updates. If you are interested in receiving monthly updates, please contact us at firstname.lastname@example.org