In
a recent letter, Carrs Toolsteel Technologies Managing Director
Bill Church
, set out the reasons for steel price increases.
After several years of low demand and even lower prices,
recent changes in world markets have provoked a rapid and
accelerating reversal of this situation. There have been
particularly dramatic price increases in scrap, alloying materials
and energy.
Carrs Toolsteel Technologies has developed very
strong relationships with its suppliers who are all world leaders
in quality and technology. These relationships have enabled us to
secure supplies that will allow us to maintain deliveries to
customers but, in order to do so; we have had to accept
significantly higher prices with no guarantee of stability. For
instance, alloy and scrap extras are now routinely adjusted on a
quarterly basis.
We are obviously not able to absorb these
substantial increases and so, with effect from 4th May 2004, we
shall be
increasing all our prices by the amount that alloy extras have
increased from April 2003 to April 2004. These extras will be
reviewed on a quarterly basis and prices increased or reduced
accordingly. Details of current alloy extras will be published on
our website www.carrs-tool.co.uk
In these difficult market conditions, it is
impossible to forecast how prices, lead times and availability
will move. However, we are committed to maintaining adequate
levels of stock and providing customers with a service level
second to none.
If you need any additional information, I or one
of the team will be pleased to supply it.
Bill Church - Managing Director
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