Sandvik Materials Technology, Product Area Wire, has announced that it plans to amend the current alloy surcharge model in two ways. In order to improve the overall management of alloy surcharge, and reduce the risk due to a longer time period, Sandvik will reduce the time lag from 75 days to 45 days. This reduction in days, i.e. the lag between the market alloy prices and its alloy surcharge, will result in a closer correlation between material prices and surcharge. This will fully apply from February 2009 when the rates from 16 December to 15 January will be debited. In line with other major wire producers Sandvik will introduce Copper and Titanium in the surcharge model. 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.
