ADJUSTMENTS TO THE SURCHARGE

As before, we have had to contend with extremely volatile prices on the raw material markets, with the prices for hot-rolled wide strip steel in particular being almost impossible to predict due to the ongoing market dynamics. WIKUS is absorbing 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 unstable price factors. We will therefore continue to rely on a variable surcharge in order to be able to maintain our ability to deliver.

Many customers have expressed their understanding for this measure, but have also expressed a desire for change. We are taking the feedback from our customers very seriously and will therefore make some adjustments starting from November 1st, 2023, so that you can benefit from better predictability in particular.

What is changing? Schedule and basis for determination

The review and determination will take place semi-annually, rather than quarterly, beginning November 1^st, 2023. At the same time, the order date, and not, as previously, the delivery date, determines the amount of the surcharge.

The basis for the amount of the surcharge continues to be the steel price development for hot-rolled wide strip steel. To ensure the greatest possible transparency, we review and chart the index for hot-rolled wide strip steel four weeks before the upcoming adjustments, as before.

Your benefits:

• Short-term fluctuations are not passed on to you
• The prices specified in the order confirmation remain valid, even if the delivery date is later than the next adjustment.

In addition, we have scheduled July 1^st, 2024 as the date for the next change, so you will benefit from the current 0% surcharge for another 8 months.

Current price development and trend

The latest report from the Stahl Monitor shows a moderate downward movement in the price of hot-rolled wide strip steel. We would like to pass this positive price trend on to our customers:  

The 0% surcharge will not change as of November 1^st, 2023, and will therefore continue to apply in full.

Amount of the surcharge

The basis for determining the surcharge on a rotational basis is the current index for hot-rolled wide strip steel at the reporting date, as described above. In the following graph you will find the threshold values for the calculation. With this approach, we are ensuring that price reductions on the raw materials market are also passed on to you on a regular basis.

Next steps

We will continue to communicate transparently. We will keep you informed in the future with regular updates, review steel prices, and make the necessary adjustments accordingly.

Please contact your sales representative if you have any questions.