Dear Valued Customer,
On March 7th, nickel prices spiked and rose from the mid-teens into the $20’s; only to drop significantly on the London Stock Exchange a day later. As a result, nickel trading was suspended. We were told by our metal suppliers that numerous melt mills have already put a halt on order entry until things settle down.
This volatility has lead specialty alloy melt mills to extend their lead-times and will continue to influence metal availability. Rising oil and fuel prices for heating and at the pump will also affect transportation costs.
Surcharge is the most obvious place where J&J anticipates an impact from this unstable market. Over the past several months we have seen a rise in alloys that drive surcharge. Compounding fuel transportation costs from the melt mills and metal suppliers with continue to increase and drive-up costs that will affect base metal prices and surcharges.
We are being up-front and transparent in approaching our customers with the current state of the metal industry in order to help you plan for expected price increases and extended lead-times.
J&J will continue to efficiently manage our material purchasing and communicate any change in metal costs and availability.