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Petersen initiates price increase on steel products

To: All Petersen Customers
From: Mike Petersen, CEO

Over the past twelve months, steel pricing has been volatile, mostly in a downward direction. A combination of global over-capacity, a strong dollar and slowing growth in Chinese manufacturing were the primary drivers behind a glut of steel supply. Steel pricing bottomed out at the end of 2015.

2016 has seen a complete turnaround in this phenomenon. Domestic mills have reduced capacity and shut down blast furnaces. Scrap prices and raw material costs have seen significant increases and the U.S. steel industry has had significant recent success in pursuing trade cases against dumping of foreign product on our shores.

As a result, we have seen significant increases in our costs and accordingly must pass along an increase averaging 6% across the board on all PAC-CLAD steel products effective with orders placed after May 16, 2016.

In closing, we greatly appreciate the opportunity to earn your business and look forward to working with you through what promises to be a very positive year for the construction industry.