(1) Recommended for high and ultra-high power AC and DC furnaces with severe electrical and mechanical conditions.
(2) Euro price bsed on year to date equivalent exchange rate of 1.56. Note: Prices for Non-AGX brands less than 400mm
Contact our local sales representative for details.
Second, due to the volatile nature of the business environment that we are in, Grafech will no longer be able to offer an annual fixed contract price. Beginning with all new orders, a variable Energy Surcharge will be added to the annual base price on a monthly basis. An example of the Energy Surcharge calculation is illustrated on page two.
The base price and energy surcharge structure is effective immediately on all new orders placed for delivery before December 31, 2009, all of which are subject to our acceptance.
Orders and other commitments which have been previously accepted will be honored at the agreed upon prices, conditions of sale, and delivery schedule.
Should the need for additional commercial changes arise, we will continue notifying you in a responsible and prompt manner.
The Energy Surcharge will be calculated based on a published index that tracks the cost of a barrel of oil, which is reflective of the most volatile aspects of our costs: raw materials, utilities, freight and other manufacturing costs.
For every one dollar increase in the rolling three month average of the Europe Brent Spot Oil Price Index above $150 per barrel, a $22 per metric ton surcharge will be added to the base price. The Energy Surcharge will be shown as a single line item on each invoice. The Energy Surcharge will be calculated as shown on the following table:
|
Published Index
US Energy Information Administration for Europe Brent Spot Prices
|
Fixed
Baseline
Europe Brent Spot Prices
($ per Barrel)
|
Prior Three Month Average
Europe Brent Spot Prices
($ per Barrel)
|
Increase from Fixed Baseline
A
Europe Brent Spot Prices
($ per Barrel)
|
Multiplying Factor (1)
B
$ change in Graphite Electrode $/MT
|
Total Monthly Energy Surcharge (2)
(A x B)
$/MT Invoiced
|
|
Current (June 2008)
Calculation
|
150.0
|
120.9
|
None
|
$22
|
$0/MT
|
|
Example:
|
150.0
|
155.0
|
5.0
|
$22
|
$110/MT
|
(1)
Euro price energy surcharge will be calculated using an exchange rate of 1.56.
(2)
For three month averages where the calculation is at or below $150 per barrel, the surcharge will be $0.
An Energy Surcharge notice will be communicated by the end of the second week of each month based on changes in energy related costs as outlined in the above table. The energy surcharge published in the current month (e.g. July) will apply to the next month’s (e.g. August) shipments. If the three month average oil price per barrel is below the fixed baseline, no surcharge will apply. See table below for current three month average calculation.
We are committed to being a long term supplier of choice, making investments in our business to meet or exceed expectations and demands of our customers and other constituents. Your local representative will be contacting you soon to discuss this action in more detail and answer any questions. If you would like to speak to one of us directly, please feel free to contact us by e-mail or phone.
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