Increase in steel prices surcharge

VIEWQUEST · Apr 29, 2005

I recently obtained a quote from my NH dealer regarding a 759C hoe. The price was $700 dollars more than last year. The salesman stated that this was due to the recent surcharge in steel prices effective January of this year. Does this seem reasonable? I would appreciate some feedback. Also, do dealers recieve a "holdback" from their tractor companies to help compensate for these price fluctuations. I'd be interested in what someone has recently paid for a 759C
NH 9' hoe.

Thanks

JDFANATIC · Apr 29, 2005

VIEWQUEST,

Though I can't speak specifically about the BH pricing, steel pricing has gone through the roof, so-much-so that the surcharges cannot be absorbed and are just being passed on. Of course there isn't any gouging or profiteering going on -- NOT! But I can tell you in one of the business arenas I deal in, India is paying almost a $100/ton more for pig iron. You don't even need to do the math to figure the results of this. The best thing I can think of is getting a second or third quote to balance everything out. /forums/images/graemlins/tongue.gif

SHIFTY · Apr 30, 2005

That sounds about right,Wholesale Pricing has increased considerably over the past 12 months.Woods did have a price increase and a .20 per lb for a steel surcharge.Compare the dealers list price of the backhoe from last time till now.That should give you an idea..If its too much $$ try other dealers or Aftermarket. Woods makes a great hoe for the money as well Best of luck

J_DEERE_REDNECK · May 1, 2005

Yup, sounds about right. It's not uncommon to see a 40% jump in price as compared to last year.

elemint · May 4, 2005

( Yup, sounds about right. It's not uncommon to see a 40% jump in price as compared to last year. )

What country do you live it???? A 40% jump is unheard of. Chances are that the hoe where built before the prices of steel went up so the increases in cost are just going into there pocket not to offset steel prices. Furthermore the cost of the raw steel is not 40% of the cost of making an impliment.

sneaky_pete · May 4, 2005

( What country do you live it???? A 40% jump is unheard of.)

Not in the good 'ol U.S.A. oil business - cost of our steel went up by more than 40% last year, but we use mostly expensive alloy steel.

Kyle_in_Tex · May 6, 2005

1 1/2 years ago, you could buy scrap metal on the spot market for $107 per ton. It went up to $235/ton. Thats 118% right HERE IN AMERICA (due to Chinese demand according to insiders)

poltroon · May 6, 2005

Apparently when US steel tarriffs were put in place two years ago, the Chinese took the opportunity to buy up a lot of steel contracts at low low prices, and that plus their immediate demand for construction due to the 2008 Olympics, plus their development in general, is sending prices sky-high for the rest of us now.

In addition, steel is very energy intensive, because it uses oil to heat it and transport it, so the current high cost of oil is pushing steel even higher.

Last spring when I was putting in fencing, the price of steel fencing panels - and even staples - changed every week by a noticable amount. So even if tractors are being built with steel purchased last year, prices were going up tremendously then.

I just noticed that 100' rolls of galvanized woven wire fence that were $80 last year are $200 now.

It's really annoying, because I have a lot more fencing to put in. And, of course, I'm in the market for a new tractor. Could use a steel hay barn too. /forums/images/graemlins/frown.gif

tc33brad · May 7, 2005

The good news [if you don't work for a steel company] is that steel prices are softening somewhat but the bad news is that alot business's stock piled at higher prices so they most likely are going to want to recoup their money.

JDFANATIC · May 7, 2005

Coming from a metals and therefore raw material background, isn't it interesting how quick the metal people (you can lump gas and whatever commodity you want into this) raise prices, and suspiciously in advance of the coming hikes, and then drag their feet in lowering them, citing inventories?