Material charge - steel scrap market price fluctation indicator

Raw material surcharge (also Material charge) is a charge
invoiced per net kilos delivered in addition to confirmed
fixed casting sales price.

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.


Important ! 

Changes in methodology of material surcharge calculation

(valid from 01/05/2022, updated on 01/01/2024).

Since the spring of 2022, when in the post-Covid period the availability of raw material was limited for several quarters in a row and the prices were speculative, we were forced to include a fixed material add on in the material charge calculation.
In recent months, the market and prices of raw materials are normalizing, and we can reduce the material surcharge.
Until further notice, the fixed material surcharge add on has been reduced to 0.135 EUR/kg.

This is a temporary solution, and we intend to exclude the fixed add on from the material charge calculation as soon our suppliers would be ready to guarantee the lowest possible but stable price of raw materials/services.



CAEF index

As a basis for material surcharge costs, we use the CAEF (The European Foundry Association) price index, which represent the price of different materials in each month. 

This information is publicly available and is updated on the 15th of each month. More details >>>

CAEF price components:

  • average of the light steel scrap (25%),
  • heavy steel scrap / rails 40 cm (25%)
  • packages 30x30x30 cm (25%)
  • pig iron (25%)