CULLMAN, AL (USA) - Webb Wheel Products, Inc. announces that it will take immediate actions to mitigate the risks associated with skyrocketing global metals prices. Effective immediately, Webb will move to a monthly pricing schedule for all product lines, reflecting unprecedented increases imposed by the metals market in the purchased price of its products.
Webb Wheel Products' President Pedro Ferro explained: "Castings are a significant part of our total product costs. Webb has been working closely with our casting suppliers to monitor the scrap market trends. In the 1st quarter of 2008, scrap prices have increased 88%, and we have experienced further alarming increases since the first of April. It's unfortunate, but we have no reason to believe the extreme scrap market volatility will subside any time soon, thus making the immediate pricing changes necessary."
The costs for raw materials used in producing castings for the Wheel-End Industry have escalated at an unprecedented rate due to the increasing world demand for available scrap, such as No. 1 heavy melting steel and shredded steel scrap. Rising prices for these commodities is further fueled by a weak U.S. dollar and limited supply. Webb will continue to closely monitor this situation to mitigate, wherever possible, the impact this pricing change will have on its customers. However, it is necessary for the company to respond to these unprecedented increases in the global scrap market to maintain the product quality and service the industry expects from Webb Wheel.