November Industrial Spring Update
Place Your Industrial Spring Order NOW for Q2 and Q3 2022.
We haven’t missed a shipment of quality steel springs yet!
In an effort to keep our prices as low as possible and spring supply steady, we’re asking our customers for firm spring order commitments through September 2022. We will purchase and stock wire in anticipation of your needs.
Steel Spring Outlook for 2022
Wire prices are predicted to continue to increase in increments of at least $0.2½ to $0.50 per pound each month through Q1 and Q2. To lock in the lowest wire prices and to ensure a steady supply of industrial springs, place your order for Q3 ASAP.
Wire supply will remain on an allocation basis through June 2022. With the passage of the infrastructure bill, we anticipate an even higher demand for wire in an already heated market that’s facing historic supply shortages.
To further complicate matters, steel rod mills looking to increase profit dollars per pound are increasing capacity of “Low Carbon” production at the expense of high carbon wire — the kind of wire used to make industrial springs — is also contributing to the price increases and supply shortages.
And finally, the wire drawing mills making our raw materials are suffering from the effects of deferred maintenance and outdated, aging equipment. As a result of equipment failure, mills are experiencing unscheduled outages of three to six weeks in production.
Long, sad story short: Place your spring commitment orders NOW.
What We’re Doing to Ensure A Steady Steel Spring Supply
We’re proactive. We’re working hard to maintain our relationships with hard drawn wire suppliers and are actively seeking new supply sources.
We’re pragmatic. We have avoided several price increases by purchasing wire well in advance, due in part to our customers’ cooperation in sending us their forecasts and orders well in advance.
We’re loyal. We have been flooded with spring inquiries over the past year, but we have been forced to turn down any new business that would jeopardize our existing customers’ spring supply.
We’re honest. We’re buying wire now to save you money. And we’ll pass that savings along to you whenever we make your springs.
We’re hardworking. Our Tennessee Spring and Metal team has worked weekends and overtime to compensate for delayed shipments of raw material.
We care. We will continue our unorthodox practice of “buying ahead,” so that our long-standing customers have the springs they need to keep their production lines moving. We will begin buying wire for Q2 and Q3 based on customer commitments.
Thanks to these efforts, we have the raw materials we need to serve our existing customers through the rest of 2021. So that we can continue to reliably serve you, send us your forecasts for 2022 as soon as possible.
For more information about Tennessee Spring and Metal and our transparent price policies, contact us at 1-800-497-3545 or email us at info@tennesseespring.com.
Tennessee Spring and Metal is AS9100 Rev D, ISO 9001:2015 certified.
