SOURCE: Olin Brass

Olin Brass

March 22, 2011 13:21 ET

Olin Brass Announces Cu Surcharge

EAST ALTON, IL--(Marketwire - March 22, 2011) - Continued copper price escalation and volatility have forced Olin Brass to rethink the way we implement published price surcharges. Upon examination, Olin Brass wants to ensure that its surcharge mechanisms are applied consistently and uniformly to adequately represent capital costs, and the increased expense incurred with metal that is lost in the melting process. Olin Brass' aim is to simplify and add consistency to the pricing process to ensure fairness to the customer and Olin Brass.

Accordingly, effective with new shipments on or after April 1, 2011, Olin Brass will combine the following elements in the copper surcharge:

  • Cathode Premium
  • Working Capital
  • Cost of Melt Loss

The surcharges will be applied to total pounds shipped on all alloys and will be based on the following published COMEX price levels:
 

* COMEX Price Range   Aggregated Metal Surcharge
 $2.00 - $2.50   $0.0125
 $2.51 - $3.00   $0.0250
 $3.01 - $3.50   $0.0375
 $3.51 - $4.00   $0.0500
 $4.01 - $4.50   $0.0625
 $4.51 - $5.00   $0.0750
 $5.01 - $5.50   $0.0875
 $5.51 - $6.00   $0.1000
 $6.01 - $6.50   $0.1125
 
 * Official COMEX settlement price of copper on the day of shipment.   

The existing energy and fuel surcharge will remain in effect.

This aggregated surcharge will be implemented at all Olin Brass downstream businesses, as well as all commercial customers.

All previous firm fabrication adders remain in place.

Aggregated Metal Surcharge for Fabricated Products

Concurrent to the recent Olin Brass Mill Products announcement Olin Brass Fabricated Products will be implementing a similar surcharge to help offset the impact of higher metal prices on our business.

Continued copper price escalation and volatility have forced Olin Brass to rethink the way we implement published price surcharges. Upon examination, current surcharge mechanisms are not applied consistently and uniformly and do not adequately represent the expense incurred with metal that is lost in the melting and fabrication process. Olin Brass' aim is to simplify and add consistency to the pricing process to ensure fairness to the customer and Olin Brass.

Accordingly, effective with new shipments on or after April 1, 2011, Olin Brass will combine the following surcharges:

  • Cathode Premium
  • Working Capital
  • Cost of Melt Loss

The surcharges will be aggregated to a single surcharge based on published comex price levels:
 

* COMEX Price Range   Aggregated Metal Surcharge
 $2.00 - $2.50   $0.01875
 $2.51 - $3.00   $0.03750
 $3.01 - $3.50   $0.05625
 $3.51 - $4.00   $0.07500
 $4.01 - $4.50   $0.09375
 $4.51 - $5.00   $0.11250
 $5.01 - $5.50   $0.13125
 $5.51 - $6.00   $0.15000
 $6.01 - $6.50   $0.16875
 
* Official COMEX settlement price of copper on the day of shipment.

The existing energy and fuel surcharge based on diesel fuel prices will remain in effect. The surcharge will be applicable to all alloys.

This application surcharge will be calculated using the official Comex settlement price of copper on the day of shipment.

Contact Information

  • Contact:

    Tom Werner
    Vice President, Marketing & Sales
    e-mail: brass@olinbrass.com
    Phone: 618.258.5000