Surcharge Frequently Asked Questions

What is a material surcharge?

Shortages of particular raw materials, such as Nickel, create price fluctuations in the marketplace. As the prices of these raw materials increase, stainless steel producers levy surcharges in order to recover these additional costs. Instead of adjusting existing pricing or contractual agreements, these costs are passed on as surcharges.

How does Brown Metals Company calculate surcharges?

Surcharges are derived directly from the Allegheny Ludlum Steel Corp. website. They are rounded to the nearest cent.

Which surcharge applies to my order?

Surcharge takes effect at the time of shipment. If your order is placed in January, but shipped in February, then the February surcharge would be the amount applied to your order.

Which 302 / 304 surcharge does Brown Metals Company use?

Surcharges are assessed based on the percentage of raw materials contained in the stainless steel product. Almost all 302 / 304 material sold by Brown Metals Company contains a 9% minimum Nickel content. Because the Nickel content is 9%, Brown Metals Company uses the 304 9% surcharge listed on the Allegheny Ludlum Steel Corp. website.

How does Brown Metals Company assess surcharges?

Surcharges are listed as a separate line item on your invoice. This allows us to maintain an accurate sales price history in our computer system. If you would prefer to have the surcharge added to the sales price and displayed in one line item, please inform your Brown Metals Company customer service representative. We are happy to accommodate your request.

When will surcharges go away?

It's difficult to say. The price fluctuations in the raw materials used to make stainless steel determine whether surcharges are assessed. As long as the prices of these raw materials stay above the base level price, surcharges will continue to be levied. Currently, the base level for Nickel is $2.00 per pound. For the current market price of Nickel, please see the next question. In addition, this memo from Allegheny Ludlum Steel Corp. lists the base prices of Chromium, Nickel, and Molybdenum [http://www.alleghenyludlum.com/ludlum/pages/whatsnew/ferrochromesurcharge061102.pdf].

Where can I find today's price of Nickel?

http://www.metalprices.com lists the current market price of Nickel as well as prices for other raw materials