Steel market

Surcharge and Review Period

Over the past few months, we have had to contend with massively rising prices on the raw materials markets, with prices for hot-rolled strip steel in particular soaring. The reasons include rising Chinese export and production costs and, in particular, the effects of the Russia-Ukraine conflict: In the near future, considerable quantities of steel that previously came from these nations will probably have to be replaced on the world market.
WIKUS has been able to absorb a considerable part of the price increases and supply bottlenecks in the steel trade through numerous measures such as increasing production capacities, but there is currently no end in sight to the steel crisis. That is why we introduced a variable surcharge in July 2021 in order to be able to maintain our delivery capability.

Basis for the Determination

The steel price development for hot-rolled strip steel provides the basis for our surcharge. The exam takes place once a quarter. Please refer to the attached table for the respective dates.

Review & Adoption Date/Setting of Surcharge

Implementation of Surcharge

04/22/2022*

05/01/2022

07/01/2022

08/01/2022

10/01/2022

11/01/2022

*Different audit frequency: Normally, the audit would have taken place on 01.04. Due to the current price development, it has been postponed to 22.04. in your favor. The conversion will take place as usual on 01.05.

Current Price Development and Trend

To ensure the greatest possible transparency, we regularly review and illustrate the index for hot-rolled strip steel. The current report from Stahl Monitor shows a massive increase in the price of hot-rolled strip steel of more than 50 percent to a new all-time high of almost €1,400/t, implying an increase in the surcharge.

Amount of the Surcharge

As described, the basis for the regular determination of the surcharge is the current index for hot-rolled strip steel on the reporting date.
You will find the threshold values for the calculation in the following graphic, based on bimetal saw bands.
With this approach, we ensure that price reductions on the raw materials market are also regularly passed on to you.

Depending on the product group, the surcharge is as follows:

  • WIKUS bimetal saw bands: increase to 7.2%
  • WIKUS carbide saw bands: increase to 7.7%
  • WIKUS sanded saw bands: increase to 7.7%

The confirmed delivery date is decisive for the calculation.

Next steps

We will continue to communicate with transparency, keep you up to date with regular information, review steel prices, and make changes to the above table accordingly.

Please contact your sales representative if you have any questions.

Any more questions?

We are happy to answer your questions, feel free to contact us!

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WIKUS FRANCE S.A.S.
WIKUS Nordic AB
WIKUS AUSTRIA GmbH
WIKUS Saw Technology, Corp
WIKUS Canada Ltd.
WIKUS Saw Technology (Shanghai) Co. Ltd
WIKUS India Pvt. Ltd.