Volume 1, Issue 4

In This Issue

Featured Article:
Mid Year Material Cost Update

Base Metals Exchange Rates

The charts below are updated every minute. To see current rates, click here to view this page online.

For more information on this topic, please call IMETCO at 800-646-3826 or send an e-mail to learn@imetco.com.

If you would like to schedule an onsite presentation or speak with a metal roofing specialist, please contact sales@imetco.com.




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Carbon Steel

Cold-rolled coated steel is the most prevalent material used for standing seam metal roofing. Zinc, the primary metal used for the hot-dipped coatings on carbon steel, is currently in short supply and trading at an all-time high price. Iron ore producers have recently negotiated price increases with steel producers in Europe and Asia. Regarding domestic production, energy prices are affecting the cost of producing steel by the electric furnace method, a common method in the United States. A major accident at a Chicago area mill and scheduled maintenance shut-downs at other facilities are further constricting supplies. Finally, a weak US dollar and inflation concerns are limiting the availability of foreign steel offers from import traders.
 

Stainless Steel

For quite some time now, historically high prices for molybdenum have been responsible for significant price increases in Type 316 stainless steel. More recently, the cost of nickel has affected base price and surcharge rates of Austenitic grades, such as Type 304 and Type 316 stainless steel. Demand has been strong, and mill lead times are running 3 to 4 months or longer. Terms continue to be “price in effect at time of shipment,” meaning no firm pricing is available until the material has been shipped to the buyer.

Aluminum and Copper

Aluminum and copper prices have been severely affected by speculation in the futures market. In May 2006, copper futures reached an all-time record high, and aluminum ingot prices reached a 17 year high. To put these increases into context with historical average prices of just a couple years ago, copper has increased nearly 300% and aluminum has increased over 80%. Both metals have experienced daily price fluctuations of over 10%.


 

Other Factors

Energy prices continue to result in surcharges assessed for transportation of raw materials, as well as costs to paint steel and aluminum coils for metal roofing and wall panel products. Environmental regulation, consolidation, and pension legacy costs continue to position domestic suppliers at a disadvantage to foreign sources, especially those in Eastern Europe and Asia.

 

Outlook

The near-term outlook for the remainder of 2006 will be similar to experiences in 2004: upward price pressure and moderate supply shortages. Manufacturer’s with strong financial support and forward looking supply chain management will be better positioned to meet construction deadlines and honor quoted prices. For others, non-negotiable and short notice surcharge announcements may once again become normal terms. Additional consolidation and/or bankruptcy remain possible for those entities that lack the financial resources to obtain raw material or honor price quotes.

© 2006 IMETCO (Innovative Metals Company, Inc.)

Neither Innovative Metals Company, Inc. (IMETCO) nor any of its affiliates makes any representation or warranty of any kind with respect to the materials and information contained herein. Although IMETCO attempts to provide accurate information, this bulletin is intended for general reference and informational purposes only. IMETCO assumes no responsibility for errors or omissions in the content contained in, or directly accessible from, this bulletin, and makes no commitment to update such information. IMETCO shall not be liable for any damages relating to your use of, or reliance upon, this bulletin or any of its content.