MetalMiner models shed light on the challenge of determining what products ‘should cost’
How much should your metals buy cost?
It’s a simple question that doesn’t always have a simple answer — or, at the very least, an answer that’s easy to get.
MetalMiner’s “should-cost” models aim to cut through the confusion and give buyers concrete ideas of what the products they’re buying should be costing them.
The MetalMiner should-cost models cover aluminum, steel and stainless steel.
So, what exactly do the models offer?
Aluminum should-cost model
With respect to aluminum:
- Comprehensive price breakdowns, including conversion cost for specific grade, thickness and width.
- In addition, the model is global; buyers can use from multiple regions.
- Lastly, buying organizations can more effectively “lock” conversion costs.
“Many competitors publish the LME three-month price along with the MW premium,” MetalMiner CEO and Executive Editor Lisa Reisman recently noted. “Few, if any, publish the conversion adder based upon grade, gauge, width etc. The MetalMiner aluminum should-cost model provides a level of granularity not previously available in the marketplace.”
Carbon steel
As for carbon steel, there is currently no North American price index for finished steel inclusive of adders and extras.
In addition, the carbon steel should-cost model includes:
- Most steel contracts are agreed on the basis of base price, which provides little to no flexibility to negotiate on total price. The steel should-cost model provides a price breakdown for adders/extras, which can generate additional cost savings for steel buyers.
- The model includes a price breakdown comparison of major U.S. steel mills. Buyers can use the information to negotiate annual sourcing contracts.
- Furthermore, the model contains a high level of granularity for specific types of steel (examples of specificity can be found on our carbon steel price landing page).
Stainless steel
What about stainless?
Similarly, there is currently no North American price index for stainless. In addition, the MetalMiner stainless should-cost model:
- Contains a high level of granularity for specific types of stainless. Examples of specificity can be found on our stainless price landing page.
- Second, the model features comprehensive price breakdowns (base price + gauge/width + finish + surcharge + vinyl + CTL).
- Lastly, it provides better means of negotiating effectively with suppliers.
For more information about the MetalMiner Insights platform and should-cost models, visit the MetalMiner Insights landing page.
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