Subject: Pricing Announcement
To Our Valued Customers:
We are experiencing unprecedented volatility in the Specialty Steel Industry. The major domestic melting mills for our Flat-Rolled Strip product have led the way by increasing their prices three times thus far in 2021, totaling more than 20%. Our re-roll and international suppliers have all followed with similar increases.
In addition to the base metal costs, we have also experienced significant increases in the cost of wood, cardboard boxes, spacers, reels, and plastic and metal strapping associated with packaging our strip products.
Gibbs is no longer able to absorb these added expenses.
Effective with scheduled shipments on or after April 12, 2021, we will increase our book prices for Flat-Rolled Strip by approximately 7.5%. For specially priced items, your sales representative will contact you to discuss increases.
We will be increasing our strip packaging charge from $12.50 per skid to $17.50 and additional charges may apply for special packaging requirements. This packaging increase does not apply to certain products shipped on returnable reels.
We appreciate your continued long-term support as we implement these increases. Please contact your local sales representative with any questions.
William J. Torres, President
Gibbs Wire & Steel Company LLC