Steel Market Activity – Qtr 2 2008

Ref: Steel Market Activity – Qtr 2 2008: Prior Notification

 

PLEASE READ: THIS DOCUMENT CONTAINS IMPORTANT INFORMATION

 

In recent weeks, we have been informed by our steel suppliers and other leading market experts that by Quarter 2 of 2008, the Steel Supply Market will be significantly affected by market forces within the raw materials sector. The market changes that have happend during the last few months will lead to an increase in raw steel prices, expected to be upwards of 10%-20%.

 

As a company, we are actioning everything within our control to ensure that Qtr 2, will be a smooth period of operation for both ourselves and more importantly, you, our customer and hope that this is only a short-term problem.

 

Whilst hoping to maintain our existing pricing structure during this time, we feel we should advise customers of the potential implications of the raw material increase.

 

Based on the above information, we would advise however that you take two courses of action:-

 

  1. Ensure your customers are aware of the situation and advise them of the potential for a temporary increase to any steel quotes during Qtr 2 and possibly beyond.

We hope that this prior notice will allow you to adjust your quotations accordingly.

 

  1. If you do have any pending orders for steel products, then we advise you should expedite these with your customers and place any expected orders for dispatch within the next few months.

As a company we will be increasing stocks of raw materials in an attempt to offset some increases and attempt to hold our existing price structure for as long as reasonably possible.

 

Please do contact our Head Office or your Area Sales Manager if you have any further questions.

 

Please be assured our best intentions at all times.  We try to keep you informed of any changes to the predicted trend.

 

Yours sincerely

 

Richard Ward

Commercial Manager

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