Re: Looking for .....
- From: greg <gjpostma@xxxxxxxxxxx>
- Date: Sat, 31 Mar 2007 16:09:54 -0500
starbolins@xxxxxxxxxxxxx wrote:
In small quantities you're going to be tied to what's available andThe "small quantities" I have immediate need for are for samples, proof of concept and 1st piece articles. We are a substantial user of 303/304 in bar stock and 304 in tubing.
that is going to be 303, 304, 316 and 416. Can't see where switching
to a hard to find grade is going to save any money. The talk of
switching to 201 comes from a market analysis article that talks of
Asian fabricators switching to 201 but this is for plate and not for
bar. Alagheny Ludlum makes a 201 grade in *** but not in bar. Can
they switch to one of the martensitic grades? Could be a cost saving
there.
starbolin
Currently the "surcharge" for 304 is $1.94 per pound and the surcharge for 201 is $.8453 (AK Steel Surcharge list for April 2007). It has been going up steadily for the past 18 months, to the point where it is costing our customer about an extra $5700 per week for the parts we make out of bar stock. The price increase on tubular products has done the same thing. When I add the increased cost of bar stock and tubular products, our customer's costs has risen more than $700,000 per year.
This is not an insignificant amount of money. We also have additional products in the pipeline.
So, thats why I need some 201.
Greg
.
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