Final Thoughts
Final Thoughts
Written by John Packard
October 16, 2013
Steel Market Update saw a letter from Majestic Steel to their customers publically announcing a price increase. Majestic, which is well known as a supplier of coated products to the HVAC and construction industries, told their customers that the price increase is due to cold rolled base prices reaching as high as $39.50/cwt and $40.50/cwt on hot-dipped galvanized. The exact amounts of the increases were not published as they varied depending on industry, item, location and previously quoted pricing levels.
We encourage those who have received an invitation to participate in our steel market questionnaire to click on the link provided in your invitation (or reminder email). All responses are kept confidential and are combined with the other 100+ respondents that we get to all of our surveys.
Our articles on the on-going contract negotiations have struck a nerve with many readers. Over the past couple of days I have had conversations with a few large manufacturing companies who view the past and the present through a different lens than I have with my mill, service center and trading company background. I will spend more time on the subject but I would like to pose the question which was presented to me by a couple end users: What is a fair and/or reasonable price difference between a Tier 1 buyer and that of their smaller competitors? For that matter what makes a company a Tier 1 buyer vs. being Tier 2 or 3? Please send your comments to: John@SteelMarketUpdate.com
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard
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