Rocky Mountain Steel Mills' (RMSM) Rod and Bar mill in Pueblo, Colorado has announced to customers that it is adding a raw materials surcharge for coiled rod and rebar and is increasing its energy surcharge for these products, to take effect immediately.
Effective with shipments as of April 4, 2008, the company is adding a surcharge of $7.50 cwt ($165 /mt or $150 /nt) for raw materials, and it is raising its energy surcharge from $0.60 cwt. ($13 /mt or $12 /nt) to $2.00 cwt. ($44 /mt or $40 /nt). RMSM's current base price for coiled rod and rebar of $39.50 cwt. ($871 /mt or $790 /nt) remains in effect.
Mr. Bill Groom, RMSM's director of rod and bar sales, explained in the announcement that the surcharges are needed to offset rising raw material, energy and transportation costs, as well as the limited raw material availability. Mr. Groom said that the company has "no choice" but to pass along these costs.