How will a die caster be determining the price for metal that will be used in a die casting?
A. Metal pricing for die castings is based on the die caster’s prevailing cost for the alloy specified on the day the estimate is prepared. In some instances, the die caster’s quotation may make reference to various published alloy prices or other indicators. Metal price is commonly established from quotations from an approved metal supplier, or based on known industry indicators such as the daily American Metal Market, the London Metal Exchange or the Aluminum Association. If the purchaser elects to use an industry indicator, he or she may forfeit the advantage of spot metal buys at lower than market price. The cost for the die casting alloy is subject to fluctuations beyond the control of either the purchaser or the die caster, and the actual price charged for the die casting will reflect the changes required to adjust for all metal market variations. Similar adjustments may be made on each release and/or reorder.
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