February , 2008

We have informed you in recent weeks about the surge in prices of steel and met coal, used in the production of steel.  Since our informational letter was written a little over a month ago, this situation has not improved, and if anything, it has gotten worse.  In recent weeks we requested pricing for certain large diameter flanges and were shocked to learn that in less than a year’s time, prices had jumped 137%.  Scrap prices advanced in the month of January, have settled only five dollars a ton in February, and are expected to hold fairly stable in March.  We hear that there could be another increase in billet for flanges in March, and pipe has definitely gone up, with rumblings that it will increase again.

 With all this in mind, we are issuing a new price schedule 308-I, which will be effective March 1, 2008.  The discount structure will remain the same.  This price sheet will only be issued on the internet because we feel that in March or April there may be another substantial increase in both fitting and flange prices.  We tried to hold the line on some material, but were not able to do so on other items.  We are learning of shortages in both flanges and fittings and I believe most of the U. S. manufacturers of flanges and fittings are pretty much covered up.  We understand that offshore fittings have had price increases and in India, where a large number of import commodity flanges originate, prices have also increased.

We continue to invest in new equipment, with some scheduled for delivery within the next 30-60 days, and more scheduled later this year, in an attempt to keep Weldbend as competitive as possible, with unquestioned quality.  We feel that the smart buyer will keep extra inventory on hand during these times of possible material shortages.

Weldbend continually strives to keep the costs down for domestically-manufactured welding flanges and fittings.  As always, we appreciate all your past business and the continued loyalty you have shown us. 

James J. Coulas, Jr.
President

You can depend on Weldbend!

www.weldbend.com