Just thought I'd fish around and see how everybody else is coping with steel price increases.

We have approx. £100 per tonne increases this month from some suppliers and some others are applying increases on a weekly basis. We have told ASD that we will not be using them for the moment because they are applying these weekly increases but not announcing what they are until the previous Friday. This means that if you have outstanding orders you will not know how much you are going to pay until almost the time it is delivered. 

I always thought the idea of a stockholder was that they would 'hold stock' for call off. They now seem to be saying that this is no longer the case and will always charge 'current' price irrespective of when it was ordered or what the prevailing rate was at the time.

I know that we are, individually, small fish in a large pool but I think it is time we got tough with the likes of ASD. I know that the increases are not of their making but if we don't let them know how we feel then they, in turn, will not be telling the mills.

What do you think?  Dave

We normally only guarantee the price within the month it is quoted, but as steel stockholders are now adjusting their prices on a daily basis, we are now having to put a note on our quotes stating the price is based on our own stock level.  If at time of ordering our stock is exhausted then a requote will be required.

It is not ideal but covers us from taking a hit, I also tell our estimators that when they obtain a price from the steel supplier to get the price in writing and a guarantee to hold that price for 30 days.  Our main steel supplier at present will do that for us.