In this way we were able to determine basic prices once and for all and to agree on the alloy surcharge as a variable component of the overall price, which should make up for fluctuations in prices for the individual alloys. In this way new negotiations during the agreed period of validity for prices were no longer necessary.
First of all a calculation period of the previous 3 month was used, which promised to give us good equalisation and in this way no large jumps in the alloy surcharge.
But then nickel, one of the most important component alloy parts to become a sought after speculation object on the LME (London Metal Exchange), and its prices started to adopt irrational courses. The price of nickel, which fluctuated comparatively slowly between 4,000 and 10,000 $/t from 1994 to 2003, developed a dynamic from November 2005 (price: 12,000 $/t) which peaked at a historical maximum price of 50,000 $/t only 1 ½ years later in May 2007, but then abruptly crashed to 10,000 $/t (November 2008) in only 1 ½ years. This dynamic with a calculation period of the 3 previous months could no longer be tolerated by manufacturers.
This is why the calculation period was set as the 2 previous months and finally as one month prior. Merely manufacturers of hollow bars and seamless tubes left the calculation period as the last two elapsed months.