June 1, 2008

With the unprecedented increases in steel prices we have received, Weldbend is issuing a new Price Sheet 608-I, effective June 1, 2008.

In our attempt to hold the line as much as possible and not change our prices every time we get an increase, we have tried to let our customers take advantage of some of our inventory so they can adjust the increases to their customers in a more orderly manner, but this difference is just too large now.

In addition to the increases in the steel prices, availability is becoming a bigger problem at this time.  Although all manufacturers have been promised, I think, approximately the same tonnage for both pipe and billet as they have in the past, at the end of the month some of the numbers are falling short of previous purchases.  There is still a huge demand for pipe, fittings and flanges throughout the world, including the oil sector in this country.

We just heard yesterday that a large flange manufacturer in India that several major U.S. master distributors and importers use, has now ceased operations and the outcome of that situation is still very unclear.  When a major player like this is taken out of the market, importers begin scrambling to try to fill orders that they had previously placed with this company.  All buyers have to be very cautious, because going to unfamiliar parts of the world for material from unknown manufacturers with unknown quality, and sold at the risk of the buyer, could be damaging to the name of your company and could possibly cause a financial strain.

All of this flux in steel prices (we still hear of further increases in the not-too-distant future) and steel demand, as well as some companies ceasing operations, will put a bigger demand on domestic manufacturers here in the United States, until this entire situation has settled down.

Again, we appreciate your understanding and if there is anything we can do for you, please don’t hesitate to call.

James J. Coulas, Jr.
President

You can depend on Weldbend!

www.weldbend.com