Spot Market Pricing for AGX™ standard sized graphite electrodes effective

 

                                                                                               September 17, 2009

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”)

 $8025

 $3.64

 €5500
 
UCAR® Grade AGX™ Graphite Electrodes 
 
From 450 – 600 mm
(18” to 24”)

 $7795

 $3.54

 €5340
 
UCAR® Grade AGX™ Graphite Electrodes 
 
From 650 – 750 mm
(26” to 30”)

 $8185

 $3.72

  €5605

     (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:

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) 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. 

Published Index
Europe Brent Spot Prices
($ per Barrel)

 Electrode Base Price
($ per MT)

Monthly Energy Surcharge (1)
($ per MT) 
 

Total Electrode Price (1)
($ per MT) 
 

 Increase due to Surcharge
(% Change)

</=90.0 

 7795

0 

  7795

0% 

 91

 7795

22

  7817 

0.2% 

 95

 7795

110 

 7905

 1.4%

 100

 7795

220

 8015

 2.8%

  105 

 7795

330

  8125 

 4.2%

 110

 7795

 440

 8235

 5.6%
(1) Euro price energy surcharge will be calculated using an exchange rate of 1.46.

 

Energy Surcharge Publication:

      

Europe Brent Spot Price (USD per barrel)
  Jan Feb March April May June July Aug Sept Oct Nov Dec
2009

43.44

43.32

46.54

 50.18

 57.30

 68.61

 64.44

 72.51

        

Three Month Moving Average

 54.66

 45.28

 42.24

 44.43

 46.68

 51.34

 58.70

 63.45

 68.52

      

         Updated:  September 16, 2009                                                                                         Source:  U.S. Energy Information Administration

If you prefer a PDF document, please click here.

To access the European Brent Oil Index chart, please click here.