Sunday, June 11, 2006
Hamond Lead Times for June and beyond, general business conditions
From now until September, we have extremely limited machine availability on our machines. We have scattered time slots still open on each of our machines, but not much. If you need to place an order for delivery this summer, please get it in now so we can work it in around existing committments.
Several important commodity prices are rising. Copper and zinc in particular are of relevance to our customers. We've also been told that both low and high carbon steel prices are on the rise.
Steel lead times are also a concern. We've already had some some surprisingly long lead times quoted to us.
Zinc is used in the manufacture of galvanized steel, and in the most common plating processes. So if your part is made from steel, we probably either make it out of galvanized steel or plate it afterwards for you. Either way, a sharp rise in the price of zinc, such as what we're seeing now, will effect you.
We've already gotten price increases from our platers, ranging so far from 3 to 5%. I doubt this is the end of zinc price increases.
We haven't priced any new galvanized steel in a while, but, when we do, I expect that we'll see a price increase there too.
The increase in Copper prices has effected all Copper derivitive alloys, including Brass and Beryllium Copper.
We recently upgraded our costing spreadsheets to reduce the cost impact on our customers of market volatility like this. We certainly can't eliminate the volatility, but we reduced the amount that our price swung in response to input cost variations.
As always, you can consult our sales manager John for more detailed information. Call him at 416-998-0212 or email him at john.sheehy@hamond.com.
It's worth pointing out that expensive raw materials make slide forming all the more attractive. Unlike some other stamping disciplines, slide forming does not use a carrier strip, and so waste material is minimized.
Several important commodity prices are rising. Copper and zinc in particular are of relevance to our customers. We've also been told that both low and high carbon steel prices are on the rise.
Steel lead times are also a concern. We've already had some some surprisingly long lead times quoted to us.
Zinc is used in the manufacture of galvanized steel, and in the most common plating processes. So if your part is made from steel, we probably either make it out of galvanized steel or plate it afterwards for you. Either way, a sharp rise in the price of zinc, such as what we're seeing now, will effect you.
We've already gotten price increases from our platers, ranging so far from 3 to 5%. I doubt this is the end of zinc price increases.
We haven't priced any new galvanized steel in a while, but, when we do, I expect that we'll see a price increase there too.
The increase in Copper prices has effected all Copper derivitive alloys, including Brass and Beryllium Copper.
We recently upgraded our costing spreadsheets to reduce the cost impact on our customers of market volatility like this. We certainly can't eliminate the volatility, but we reduced the amount that our price swung in response to input cost variations.
As always, you can consult our sales manager John for more detailed information. Call him at 416-998-0212 or email him at john.sheehy@hamond.com.
It's worth pointing out that expensive raw materials make slide forming all the more attractive. Unlike some other stamping disciplines, slide forming does not use a carrier strip, and so waste material is minimized.
This BLOG brought to you by
Hamond Industries Ltd - the Slide Forming Specialists
