Steel Prices Projected to Surge 2014
Automation Devices, Inc. (ADI), a vibratory feeder and part system components manufacturer has seen an increase in the cost of stainless steel over the last several months. Due to a reduced supply of nickel, a key component in stainless steel production, the cost of both nickel and various forms of stainless steel are predicted to rise in the impending future.
According to Powder Metallurgy Review, “The price of nickel, a key alloying element in low alloy steels, stainless steels, high alloy steels and non-ferrous alloys, has risen 16% since the start of 2014. The cost of nickel is set to escalate even higher as a result of reduced supply of nickel ore following an Indonesian ban on exports. Until this ban, Indonesia was the world’s top high-grade nickel ore supplier.”
ADI’s Purchasing Manager, Dave Repko says that the company’s steel vendors project that raw materials will undoubtedly go up, though they are uncertain as to what magnitude.
“We are encouraging our customers who have vibratory parts feeding projects on the horizon to get their requests for quotes submitted as soon as possible, in the event that prices do soar in the near future.”
According to Business Standard, “Stainless steel finished product manufacturers are considering raising prices in phases due to a 15 per cent jump in nickel prices.”
“If our costs go up we inevitably have to increase our prices. We’d like to avoid that as much as possible”, says Repko. “At ADI it important to us that we can provide the quality of parts feeding equipment that our customers expect at reasonable prices.”
Automation Devices, Inc. is a vibratory feeder manufacturer in Fairview, PA specializing in vibratory feeders, centrifugal feeders, hoppers and vibratory controllers and also services all brands of feeding equipment. ADI offers in stock products and custom designed vibratory feeding systems. For more information, please visit www.autodev.com or call Automation Devices, Inc. at 814-474-5561.