posted on March 05, 2021 09:00
To All Our Valued Customers and Rep Associates:
I would like to take a minute and explain the steel market conditions that have impacted the industry and have led to all the recent price increases.
The main reasons are as follows:
- The COVID pandemic has affected everyone. It has caused a slowdown in businesses due to shutdowns and work forces being impacted by the fast spread of the virus. As a result, it has forced businesses to reduce manufacturing due to the lack of sales and steel mills to cut back or reduce production. As a result of business demand interruptions, the trucking industry has reduced the availability of their carriers based on the disruption of delivery needs. Also, in an effort to preserve the health of their drivers, many trucking companies have turned to alternative operating options, further reducing the amount of available delivery trucks. All these factors have caused a shortage that has impacted costs, which has led to pricing to be based upon availability.
- The CRU Hot Roll substrate increased from $468 in August to $1,204 (a ton) this week (03/03/2021). As aforementioned, this was caused due to the lack of sales caused by shutdowns and in turn causing reduced production.
- Steel mills are now faced with the challenge of increased production requirements due to all the jobs that were paused during the pandemic and the continuing new jobs coming in.
- Imported Steel had a 25% tariff applied to any incoming raw materials, not allowing them to be competitive in the domestic market. Additionally, with the worldwide market facing increased demand, it limits them of any reason to compete in the Domestic market.
It is for the above reasons, that we must regretfully announce an additional 10-25% price increase on all Strut Metal Framing Channels and Accessories, effective March 19, 2021.
Please note, Haydon reserves the right to modify the effective date of price increases and can limit the number of orders accepted based on historical purchases. Therefore, will not accept any order to ship beyond the submitted date of price increase.
We at Haydon Corporation would like to take this time to thank all our valued customers for your understanding in this matter and look forward to continuing the mutually rewarding relationship between our companies. During this time, we hope that you, your family, friends, and co-workers have been safe throughout this unprecedented pandemic and difficult times.
Should you have any questions regarding this pricing increase notice or shall you need copies of our COVID-19 policies, please do not hesitate to call your local Sales Rep, National Sales Manager, or myself anytime.
Thank you for your valued partnership, understanding and cooperation.
Vice President Sales & Marketing