Gallardo Sections no longer to publish scrap surcharge

Germany-based steel section producer Gallardo Sections has announced that it will no longer publish monthly scrap surcharges.
 
The company said that the recent evolution of raw material prices has caused its production costs to increase into a new, higher level, compared to the situation at the beginning of 2010.
 
"Current fluctuations reflect a punctual volatility not necessarily linked to the future production costs, which we expect to remain at a very high level. Our most probable scenario forecast for the third quarter of 2010 shows an increase in both costs and sections sale prices," the company statement reads.
 
The company stated that its sales price offers, orders and contracts will be based on its price list as of June 1, 2010 and the existing ongoing contracts will extend the current scrap surcharge as of May 1, 2010 (€244/mt).