Spot Market Pricing for AGX™ standard sized graphite electrodes effective
The base prices for AGX standard sized graphite electrodes purchased from GrafTech International and its subsidiary companies (“GrafTech”) are changed as shown in the table below.
Graphite Electrodes & Pins Pricing Table
|UCAR® Grade AGX™ Graphite Electrodes||200 to 400 mm|
(8 to 16 in)
|UCAR® Grade AGX™ Graphite Electrodes||450 –600 mm|
(18 to 24 in)
|UCAR® Grade AGX™ Graphite Electrodes||650 to 750 mm|
(26 to 30 in)
(1) AGX brand recommended for high and ultra-high power AC and DC furnaces with severe electrical and mechanical conditions.
(2) Euro price based on equivalent exchange rate of 1.46.
Prices for other brands will be based on GrafTech’s prices in effect at the time of order. Contact your local representative for details.
Due to the continued volatile nature of the current business environment, base price will continue to be subject to an energy surcharge adjustment in the event of an increase in the oil index as described below.
In view of the difficulty projecting needs in these uncertain times, GrafTech will work with customers to the best of its ability to accommodate reasonable and justifiable delivery schedule request changes provided we receive at least 60 days advanced notice.
The pricing structure is effective immediately on new orders (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.
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.
Energy Surcharge Calculation:
The Energy Surcharge, calculated based on a published index that tracks the cost of a barrel of oil, reflects the volatile change in raw materials, utilities, freight and other manufacturing costs. For every one dollar by which oil exceeds $90 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 per the following table:
Prior Three Month Average
Increase from Fixed Baseline
$ change in Graphite Electrode $/MT
Multiplying Factor 1
$ change in Graphite Electrode $/MT
Total Monthly Energy Surcharge 2
1 Euro price energy surcharge will be calculated using an exchange rate of 1.46.
2 For three month averages where the calculation is at or below $90 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 will be published on our website (www.graftech.com). The energy surcharge published in the current month (eg. September) will apply to next month’s shipments (eg. October). If the three month average oil price per barrel is below the fixed baseline, no surcharge will apply. See table below for examples of various levels of surcharge calculations.
Electrode Base Price
Monthly Energy Surcharge 1
Total Electrode Price 1
Increase due to Surcharge
1Euro price energy surcharge will be calculated using an exchange rate of 1.46.
Energy Surcharge Publication:
Europe Brent Spot Price (USD per barrel)
|Three Month Moving Average|
Updated September 16, 2009 Source:U.S. Energy Information Administration
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