Spring Market Update
Just a few short years ago, I wrote to inform you about the disruptions within the metal markets; particularly those affecting the rod, wire, and spring wire industries.
At that time, supply chain weaknesses and equipment upgrades at rod mills — the specialty steel mills that produce the raw material used in spring and wire form manufacturing — were contributing to significant challenges in procuring the wire we need to form your springs and wire forms.
While these issues have largely been resolved, new areas of concern are emerging and are even more complex.
Contributing Factors to Market Instability:
Global and national consolidation of rod steel mill ownership.
Closure of rod mills within our borders.
New global tariff conflicts affecting steel and other metals imported from Canada and Mexico. (Reminder: Tennessee Spring & Metal has never and will never use materials imported from China.)
Currency fluctuations impacting international trade.
Offshore suppliers entering the commodity spring market.
Current Market Impact:
As a result, rod mill owners are collaborating more closely to regulate output and pricing, leading to tightening wire markets and uncertainty across the supply chain. We are witnessing:
Immediate price increase (March 1–15): $0.015 per lb (varies by supplier)
Short-term announced price increases (March 15–April): $0.045 to $0.055 per lb
Vendor-forecasted price increases beyond April remain uncertain
How We Are Proactively Responding to These Challenges:
Placing orders for as much material as possible to secure supply based on our existing commitments (NOTE: Quantity limitations and lack of advance purchase price guarantees persist.)
Continuously seeking new, high-quality North American suppliers that meet our high quality standards and other criteria.
Offeri.ng volume discounts
What YOU Can Do:
To ensure we can continue to meet your needs efficiently, we kindly ask for your continued support and collaboration and:
As much advance notice as possible regarding your contract requirements.
Your best estimate of purchase commitments for as far in advance as feasible
We understand these market fluctuations create challenges for your business. However, we remain committed to working proactively to minimize disruptions and control costs. Please feel free to reach out with any questions or to discuss how we can best support your needs during this time.
Sincerely,
Paul Benny and the Tennessee Spring & Metal team