Porteous: Import Fastener Prices Rising Rapidly

John Wolz

Import fastener prices are rising fast, Porteous Fastener Co. president Barry Porteous informed customers in a letter dated June 1. And they”re not leveling off anytime soon.
“Prices of steel fasteners have taken a fairly dramatic increase in the past several weeks and I foresee continued upward movement over the next several months,” Porteous stated. Zinc costs have “virtually tripled” in the past year, which has nearly doubled the cost of zinc plating, Porteous explained.
“This alone has affected plated fasteners by 5% to 8% depending on grade (largest increase on low carbon) and 15% or more on hot dipped galvanized,” Porteous noted.
Likewise, iron ore contracts were renewed at a 19% increase. This prompted China Steel in Taiwan to announce an 11% price hike on most grades of wire rod beginning in the third quarter, while China”s Boa Steel raised prices 12% several weeks ago.
In addition many grades of wire have low reserves, primarily those grades used for sheet metal screws.
Other factors driving up prices include rising freight rates and fuel surcharges, along with the appreciation of Taiwanese currency against the U.S. dollar.
“All of this translates into 12-20% increases in the cost of steel fasteners with probably another 10% in the coming months.” Porteous noted that prices for stainless steel, brass and other fasteners have climbed as well.
Although he does not expect the rapid price hikes that hit the fastener industry 2003-2005, Porteous said prices are unlikely to level off “as prices are not much higher than they have been for the past forty years with the exception of the huge drop in the late 1990″s (when steel dove to less than $300 per ton).”
Porteous Fastener Co. is still placing orders at a normal pace, Porteous explained. \ �2006 FastenerNews.com