Raw Material Pricing – Party like it’s 1999

Remember that old Prince hit?
I was dreamin’ when I wrote this
Forgive me if it goes astray
But when I woke up this mornin’
Coulda sworn it was judgment day

As I was doing the research for this article, that tune kept going through my head. The events of the last 6 months do feel more like a dream than reality. Judgment day? We’ll talk more about that later in the update series.

Raw materials are a large component of costs for metal stampers. So what has happened to the prices of the most commonly used raw materials?

Metal stampers care most about these input costs:
Steel
Copper
Aluminum
something to make the steel not rust (usually zinc or nickel)

For Copper, Aluminum, Zinc & Nickel, prices are back down to 2004 levels. In a few cases, even below 2004 levels. See these charts, courtesy of Kitcometals.com




Steel prices are down below 2007 levels.

So it’s not 1999, but in a lot of ways, it’s 2004 all over again.

What does this mean for stampers? Well, a major input cost has reverted to 5 years ago levels. Is that enough to ensure a return to profitability? Not usually. Stay tuned for the next part of the puzzle.

This entry was posted in Aluminum, Brass, Copper, Nickel, Steel, Zinc. Bookmark the permalink.

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