The alloy surcharge is a monthly per-pound charge set by the major mills to reflect current market prices for the raw materials in each grade. These include, but aren’t limited to, nickel, chromium and molybdenum for stainless steel, and scrap and iron for carbon steel.
We pass the mills’ published surcharge straight through to you, with no markup.
What it covers
The surcharge mainly covers raw material costs. It also includes other input costs that can swing sharply, such as energy used to make the steel. It is not a fuel or freight surcharge.
What it isn’t
The alloy surcharge is not a tariff, duty or government tax. It is set by the mill to reflect its costs, not by any government, and it isn’t a charge for import duties.
Why there’s a surcharge at all
The raw materials in stainless steel, nickel especially, can rise and fall sharply in price from month to month. Instead of changing their base prices every time the market moves, the mills keep a steadier base price and add a surcharge that follows the market. The price per pound is the two added together:
Price per pound Base price + alloy surcharge
How it shows on your quote and invoice
We usually list the surcharge as a separate line item from the base price. That keeps your pricing history clear: you can see how much of any change came from the market (the surcharge) and how much from the base price.
On your invoice, the surcharge has its own part number, SURCHARGE, on the line below the material it applies to:
| No. | Qty Ordered | UOM | Part Description | Qty Shipped | Price | UOM | Extended Price |
|---|---|---|---|---|---|---|---|
| 1 | 100.000 | LBS | 304L0155304 ANNEALED CRSS .015 X 2.000" AMS-5513L | 104.000 | 15.64 | LBS | 1,626.56 |
| 2 | 100.000 | EA | SURCHARGEALLOY SURCHARGE AT TIME OF SHIPMENT | 104.000 | 1.33 | EA | 138.32 |
If you’d rather see one combined price per pound, just let us know and we’ll quote it that way.
Why it changes every month
The mills set a new surcharge each month based on recent market prices for those raw materials and other volatile costs. When nickel or chromium prices go up, the surcharge goes up. When they come down, so does the surcharge.
We charge the surcharge in effect when your order ships, not the one from the month you placed the order or received your quote. If your order ships in a later month, its surcharge may be higher or lower than the one on your quote.
Why it’s different for each grade
Each grade contains different amounts of these materials, so each grade has its own surcharge. For example:
- 316 / 316L contains molybdenum and more nickel than 304, so its surcharge is usually higher than 304’s.
- 430 contains chromium but almost no nickel, so its surcharge is usually much lower.
- 1008 / 1010 carbon steel has none of these alloying elements. Its surcharge follows scrap and iron prices instead.
Where to find the current surcharges
We post the current month’s surcharges on our Surcharge page.