Steel Prices

[timw]

I just ordered a dozen bearings from one of my suppliers and they now have a 4% steel sur charge. Most of their bearings are imported, what's that about? If you order steel products, Mig wire, rods, etc, you might want to check with your suppliers and/or order ahead. Still to come will be a fuel sur charge too! I already ordered extra oil that I know that I will use.

[MAC702]

Yesterday was the first time I'd finally gotten to see the hikes in the prices. Even just a few weeks ago, I was still paying $3.65 for 20 feet of 1/2" tubing. The walk-in price was $4.

Yesterday, I paid $5.22 each. I didn't want to ask what the walk-in price was anymore.

[Paul Seaman]

Hey guys:
It isn't just steel my 1 1/4 square Al just went from $23 per 21 ft to $28 for the same. Don't get me wrong this is 6061 t5 and great stuff but lets get real that is almost 25% in 6 weeks. If this continues the little guy won't be able to buy anything the suppliers won't have a sales counter it will be large order only.

Inflation who needs it, not me!!!
Peace

[HAWK]

Heh Guys,

Here is another example. 3 weeks ago I paid $250 for a 4'x10' x 1/4" 3003 aluminum plate. The same plate is $347 this week.

[timw]

You guys are confirming my point, if you can, order ahead, if not, at least give your customers a heads up in case it gets rough and you have to pass along the costs. Jacksonville has 3 steel suppliers and they all have minimum orders and monthly quotas to purchase direct. There are a couple brokers that are making a living just buying and re-selling steel to us little guys.

[HAWK]

timw,

Here is what scares me: If I over order and the price drops, I am hung with some high dollar material. I used to stock several tons of material. Those days are gone. It is quote and order by the job only. I do not stock any mild steel, only stock a small number of 3003 and 6061 aluminum plates from .063" to .190", and very very small amount of 304SS. All 5052, 5454, and mild steel is special order only.

[Paul Seaman]

I'm glad I bought 200" of Al tube before the price went up. It will be gone soon though, I dread going to the supply with price of things now, and I used to go just to look. Can't afford to just buy on a wim for home projects anymore. I hope these prices settle soon.

[Wheels]

Wow

You guys have me looking forward to the next job I get cutting out and replacing a dump bed floor. I hate to think of the look on the customers face when he gets sticker shock. It is hard enough selling the idea of doing the job right . Now with the prices sky high I can see me turning down jobs because I refuse to half [email protected]@ a job to save a buck or two.I have done enough of these to know that a good job is actually ,in the long, run more economical for the customer.

More rantings from Mike.

[HAWK]

Mike,

Do it right or not at all! I have walked from more than one job because the customer wanted it half-_ ss _ _!

If memory serves me well, you once posted you were using 5454 alloy. What wire are you running with MIG and TIG? How would you rate its weldability. How is the abrasion resistance as oppossed to 5052 or 6061? I won't even asked about 3003. Look at that stuff wrong and it scratches!

I am curious because I am in the middle of a patent project and having some issues with abrasion.

[Wheels]

Hawk

Your memory banks are at full charge! Yea i`m using 5454 alloy ,mig procees. I think there is an alloy that has better abrasion properties but it is close to double the price. As far as welding this alloy I use either 4043 or 5356. I prefer 4043 because it doesn`t seem to be quite as picky as to cleanliness. I wes feeling your frustration in your recent post on contaminated aluminum. These dump beds I work on have had fuel oil and asphalt in them for years and can be a pain in the back-side for sure!
Someone recomended brake cleaner for clean-up and I think I will try it the next time. Ocasionally I have to use my weed burner to cook out the contamination , and then again sometimes it seems nothing works on a truck coming up on its 20th birthday. If you find the cure-all for cleaning don`t keep it a secret and I will do likewise.

Mike

[timw]

Another hit on prices. I went to see my bolt supplier today, he said he has gotten 3 price increases since first of the year. He sells a lot of anchor bolts, his supplier told him they can only guarrantee prices for 48 hours. Try bidding with that timetable! Also told #1 copper scrap price is over $2. a pound. I haven't confirmed that yet but I have about 200# plus 3 radiators in my rainy day fund. Might be getting cloudy!

[DDA52]

One of my steel suppliers has had to increase every month since the first of the year. Since Jan., we've had a 31% increase, with one more comong in May and another in June. They think June will be the last for awhile. Hope so, this is starting to hurt!

[snootworks]

Originally posted by MAC702
Yesterday was the first time I'd finally gotten to see the hikes in the prices. Even just a few weeks ago, I was still paying $3.65 for 20 feet of 1/2" tubing. The walk-in price was $4.

Yesterday, I paid $5.22 each. I didn't want to ask what the walk-in price was anymore.

"Up here" in Canada prices are becoming prohibitive for a small-scale hobbyist like myself. I paid just under $20 CDN for 20ft of 3/8" tubing the other day.

[klsm54]

On the welding wire side, we are getting added surcharges about every two weeks. since the middle of March the total surcharges on most mild steel wires and rods is about $0.10 to $0.15 per pound. I have not seen anything, yet, on aluminum filler metals. Some exotics are really jumping sky high. I have seen surcharges of $10-15.00 per pound on some cobalt based hard facing products and high nickle rods have jumped considerably. Now wires with chrome are also starting to have surcharges added.

As far as I know, this is for everybody, no exceptions. We have even had increases on major national accounts that are neegotiated by the manufacturer. I have been told by pretty reliable sources that one manufacturer held the line at a major automobile manufacturer, and got the surcharges. From all indications this for real.

We, as a distributor, are on allocation from at least one manufacturer. We can only get 90% of what we got in the same period last year, which is bad in a rising economy. The price is not the concern, it is product availability. And from what my customers are telling me, it is not just the welding wire, steel plate is also hard to come by, and pricing is what it is, no guarantees. Most of our wire manufacturers are charging us "Price at time of shipment".

A lot of my customers are quoting their work based on todays price, and letting the enduser know that they will be charged according to the price of materials as they buy them. It is not smart to guarantee any pricing, that has any metal in it, with the market the way it is. You all should be charging enough for your jobs to cover these increases. The customers should know about the problems by now, if they won't accept the increase, don't take the work. You are in this to make money, and even if it is a hobby, you certainly don't want to lose money on a job.

[HAWK]

Lost Work

I have lost 3 jobs this week due to increased materials pricing. Customers are revaluating and prioritizing needs versus wants. If it can be done without, then in most cases the job gets put on hold. Many customers are requesting aluminum, if it can be substituted, rather than steel because it is very close or slightly less money than steel in many cases. My specialty customers don't care. When they are paying $75/HR for TIG work material cost increases are of no concern. They just want the work done.