Alloy surcharge

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The alloy surcharge (LZ) is the component of the sales price that is levied in addition to the basic price for stainless steel by steel producers and traders . It is redefined every month and is valid for the entire month.

The amount of the alloy surcharge depends on the price development of the alloy elements chromium , nickel , titanium , molybdenum and niobium added to the stainless steels at the London Metal Exchange . These raw materials are traded in US dollars, which is why the EUR / US- $ exchange rate is also included in the calculation.

Because the alloying elements and amounts vary with the different stainless steels, a separate alloy surcharge is calculated for each material (material numbers 1.4xxx). There is also a distinction between products (e.g. pipes, sheets).

While the calculation of the alloy surcharge used to take into account the price development of the alloying elements of the past three months, due to the extremely sharp rise in raw material prices since October 1, 2007, only the price development of the previous month is taken into account. As a result, the LZ follows the price development faster than before. Price peaks and valleys in raw material prices are no longer smoothed as much as before.