The cost of scrap metal and iron ore materials is a major part of foundry production costs. Prices of these materials are volatile and related to actual to the market demand for these materials and prices are revised on a monthly basis. Therefore, it is not possible to fix the prices for a longer period.
In order to avoid frequent recalculation of casting prices and to provide customers with transparency in the formation of prices, the above price fluctuations in your invoices showed as a separate line as Material charge.
Changes to the previous material surcharge index are applied if the fluctuations exceed the +/- 5% limit. If the change is less, Scandicast keeps Material surcharge unchanged.
Material surcharge we calculate at the time of placing the order and exact value can be seen in your order confirmation.