Sandvik Materials Technology has amended its alloy surcharge model by reducing the time lag and by imposing the model on copper and titanium. According to the company, the time lag will be reduced from 75 days to 45 days. Time lag refers to the lag between the market alloy prices and its alloy surcharge. This move is expected to reduce risk, and Sandvik hopes this reduction will result in a closer correlation between material prices and surcharge. The company has also decided to introduce copper and titanium in the surcharge model. The changes will fully apply from February 2009, when the rates from 16 December to 15 January will be debited.
