How Do Scrap Metal Prices Affect Ultimate Product Pricing?on May 8th, 2012 at 4:02 pm
Many�manufacturers of products such as valves and actuators deal with raw material and metals on a daily basis.Price increases or decreases of these raw materials and metals affect the pricing of the ultimate product from these manufacturers.
For Example – Stainless steel grade 316 and 304 noted a decrease in pricing and value of 5 percent in April 2012. This reduction in prices has been predicted to drop more in� the month of May. Reductions in raw material prices were specifically noted in North America, South America, Asia and Europe.
Stainless steel prices and selling figures are forecasted to see another decrease in price sometime in May 2012. The ongoing credit situation in� Europe and Asia are part of the reason of this decrease. There was also a note in the decrease of demand for stainless steel worldwide, but� more specifically in Europe. Prices should still remain relatively firm through the third quarter of 2012 due to a predicted increase in demand in Asia.
It’s important to note that the price of raw materials such as stainless steel has a direct affect on the price of stainless steel products, such as valves and actuators. One manufacturer affected by these price swings is Valtorc International, a major supplier in the industrial control and actuated valves market worldwide.