If you are new to the metal industry or just started purchasing 302 stainless, 304 stainless or other combined metals you may never have encountered the combined metals and alloy surcharges. The surcharges apply to any type of combined metal product. Thin metal strips, thin sheet metal, and more will all come with a surcharge if it is manufactured from 302 stainless steel or another combined metal.
The price of the surcharge can fluctuate from month to month. Those that have been in the industry for a while know about the surcharge and why it fluctuates. This is your opportunity to learn more.
Why is There a Surcharge for Combined Metals?
If you are wondering why your high-quality 302 stainless products come with a surcharge you are not alone. A lot of customers ask the same question. If I am paying for the metal, why do I have to absorb the cost of a surcharge on top of the cost of the metal?
The answer may surprise you. While producers certainly could charge a flat fee for 302 stainless, that would be less fair to the purchaser. The cost of raw materials fluctuates, so let us say in March the cost of raw materials is higher than they are in April. If it were not for the surcharge and its fluctuations, you would pay more for the stainless than you should.
The surcharge for combined metals is sort of like a cost-share program. When the cost of the raw materials is at a higher market rate the surcharge goes up, but when the costs are lower then the surcharge goes down. It is an easy convenient and fair way of ensuring that the cost of these metals is equally shared without raising the base price to account for the fluctuations.
It is Calculated Per Pound
The surcharge is calculated per pound. Most companies will base a quoted price to include the surcharge estimate. Combined Metals of Chicago is an example of a metal company that ensures that you are getting the truest price quote possible by rolling in the surcharge cost into your quote.
Learning more about the surcharge for 302 stainless and 304 stainless connect with an industry leader that can break down the costs for you.