1600 Firestone Parkway, Akron, OH 44301
TF (800) 624-5520
Merry Christmas and Happy Holidays to you and yours.
I know I am tired about discussing COVID and the elections so I would like to write to you on another subject, Price Increases.
I have just finished reading the second price increase notice from the same unnamed tube manufacturer this week (your make bread from this). It has been hard to keep track of all the fence pipe increases but my scorecard indicates a 28% increase since September. High demand and a shortage of strip steel along with increases in the price of the raw materials are contributing to the rapid rise in prices.
On the wire rod side new orders this month will see an increase of 13.5%. This is after a 10% increase on rod in November. Rod mils are busy, but not overwhelmed. Increases are tied to a sharp rise in the price of scrap steel. Scrap is increasing because of increased demand, heavy foreign buying of inventories, and because the scrap yards feel they can raise the price because everybody else is going up.
And not to be left out, fitting and attachment companies are raising prices in the range of 7% to 20%.
On December 28th, 2020 we will again be raising our wholesale pricing just to keep up with our raw material prices. Based on our 2020 Wholesale Fence Price Catalog;
The market remains very volatile so be careful about quoting any up-and-coming projects. We will attempt to give you as much notice on increases, but todays pipe increase came to us without any notice or time to get in one last load.
As soon as we see any signs of stability we will update our Wholesale Fence Price Catalog.
Stay safe and healthy,