CULLMAN, Ala. — Webb Wheel is the latest company to announce it will adjust prices to compensate for surging raw materials costs.
Webb announced today that it will immediately implement a monthly pricing schedule through all its product lines, which will reflect current raw materials prices.
“Castings are a significant part of our total product costs,” explained Pedro Ferro, Webb Wheel Products president. “Webb has been working closely with our casting suppliers to monitor the scrap market trends. In the first 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 increased cost of raw materials is blamed on increased demand for scrap metals around the world. A weak US dollar and weak supply is contributing to the problem. Webb officials said the company will try as much as possible to mitigate the impact rising materials costs are having on customers, but conceded that raising prices is inevitable.
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