Almost 5 years ago (December would have been five) Nucor rescinded a steel price increase to announce a new formula for handling “unprecedented raw material cost increases” in the form of steel surcharges, a fee to be added to the regular monthly steel base price and set on the third Monday of the month to apply to shipments starting the first day of the following month. As many MetalMiner readers will attest to, steel surcharge has been the bane of many sourcing organizations’ existence. And though the surcharge still “exists” we predict it may stay at $0 for some time to come. But that steel surcharge went to $0.00 this month starting with shipments on November 29. This might not be good news but it’s welcome relief to firms that are finalizing commodity forecasts for 2009.
Stainless surcharges, however, are still on, though they are dropping too according to MetalMiner IndX(SM).