216-676-2000 info@graftech.com

This letter is to inform you that 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.


Spot Market Pricing for AGX standard sized graphite electrodes effective

August 16, 2010

This letter is to inform you that 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.

 Grade  Graphite Electrodes & Pins Pricing Table
Products (1) Diameters Base Price

USD$/ Metric ton

Base Price

USD$ / pound

Base Price

€ / Metric ton (2)

UCAR® Grade AGX™ Graphite Electrodes  From 200 – 400 mm

(8” to 16”)

 $6335  $2.87  €4635
UCAR® Grade AGX™ Graphite Electrodes  From 450 – 600 mm

(18” to 24”)

 $6150  $2.79  €4500
UCAR® Grade AGX™ Graphite Electrodes  From 650 – 750 mm

(26” to 30”)

 $6450  $2.93   €4725

(1) AGX brand recommended for high and ultra-high power AC and DC furnaces with severe electrical and mechanical conditions.

Prices for other brands will be based on GrafTech’s prices in effect at the time of order.  Contact your local representative for details. 

 

The base price will be subject to an energy surcharge adjustment in the event of a significant increase in the oil index.
In summary, if the per barrel price of oil remains below $90, no energy surcharge will be applied to the base price.
However, if the per barrel price of oil increases by 20% or more from today’s approximate spot price of $75, we will
need to apply a nominal surcharge as described below.
The pricing structure is effective immediately on new orders , which are subject to our acceptance, scheduled for delivery before March 31, 2011. 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:

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

$ change in Graphite Electrode $/MT

Multiplying Factor (1)

B

$ change in Graphite Electrode $/MT

Total Monthly Energy Surcharge (2)

(A X B)

$/MT Invoiced

 Calculation  90.0  68.5  None  22  0/MT
 Example:  90.0  95.0  5.0  22  110/MT

(1) 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. August) will apply to next month’s shipments (eg. September). 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.

Published Index
Europe Brent Spot Prices
($ per Barrel)
 

Price Change in Barrel Of Oil

(% Change from today)

 Electrode Base Price
($ per MT)
Monthly Energy Surcharge (1)
($ per MT)
Total Electrode Price (1)
($ per MT)
 Increase due to Surcharge
(% Change)
</=90.0 20% 6150 0   6150 0%
 91 21% 6150 22   6172 0.4%
 95 27% 6150 110  6260  1.8%
 100 33% 6150 220  6370  3.6%
  105 40% 6150 330   6480  5.4%
 110 47% 6150  440  6590  7.2%

 

Energy Surcharge Publication:

Europe Brent Spot Price (USD per barrel)
Jan Feb March April May June July Aug Sept Oct Nov Dec
2010  76.17  73.75 78.83  84.82  75.95  74.96
Three Month Moving Average  75.20  75.53  76.25  79.13  79.87  78.51

Updated:  August  16, 2010
Source:  U.S. Energy Information Administration

Click here for a PDF of current GrafTech Electrode pricing.

Click here for a PDF of current GrafTech Pin pricing.