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Surcharge Update 15th September 2021

Dear Customer,

Price increases – Steel products from 25th October 2021

We are writing to advise you of a 40% price increase on all steel products on all orders from 25th October 2021.

The increase is significant and we have been in dialogue with our suppliers over the past few weeks to understand the rises and see if there are any mitigations, which unfortunately there were none. They have recently booked their steel for Q4 and the gauges of steel used have attracted higher percentage increases due to their scarcity in the global market. The Metscale market is now at $1,200 / tonne against $750 earlier in the year, which has all contributed to the increases.

Given the level of increases and the fact that many customers are pricing ahead or want some guidance on likely price levels for 2022, we have asked our suppliers for a forward view for Q1 2022. The prospects for 2022 are further increases which could be in the 10% to 15% band in Q1. We will try and get an updated view as we move through Q4 as to where steel may go next year.

We will accept orders in line with normal order patterns but cannot accept large orders that take stock from the full customer base. Orders placed before this date will be processed at current levels.

Yours sincerely,

Ian Kemp
Sales Director
Eurocell Profiles Ltd
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