Nordfab Steel Surcharge

[Thomas Wilson]

I am at the point of figuring out my order of Nordfab ductwork. I just learned that Nordfab is applying 20% across the board surcharge to all orders due to the price of steel. I looked up steel futures in a couple of places. Here is a graph of rebar futures on the Shanghai exchange. https://tradingeconomics.com/commodity/steel

Other sources show less volitility.

Twenty per cent is a lot when applied to an order for a whole shop ductwork system. I am wondering if the surcharge may come down a bit if I wait to order. General Steel’s forecast the steel price increase for 2021 is 3.1% and for 2022 it is 4%.

Does anyone here follow Nordfab pricing? Is it likely to go up or down?

[Brian Tymchak]

Is the surcharge new or intended to cover the tariffs added to steel a few years ago?

My guess, albeit not based on any expertise, is that steel companies will jack prices to suck in as much profit as they can from the infrastructure bill that is getting closer to being passed.

[Dave Mills]

Have you looked at the product from https://blastgateco.com (https://blastgateco.com/) - it is very similar to Nordfab, and usually about 30% cheaper.

[Patrick McCarthy]

Dave, i am in the same position as Tom the OP, so am following this thread. I just clicked on the link and Blastgate has a banner across the top announcing a 10% surcharge on all metal products. Still cheaper than Nordfab, but seems to be a trend. Best, Patrick

[Thomas Wilson]

Is the surcharge new or intended to cover the tariffs added to steel a few years ago?

My guess, albeit not based on any expertise, is that steel companies will jack prices to suck in as much profit as they can from the infrastructure bill that is getting closer to being passed.
The surcharge was imposed in Feb 2021. I got an email from Nordfab a few weeks ago warning of a price increase.

[Lisa Starr]

Those surcharges are very fair if the steel for the piping products is similar to the rest of steel. We've seen 30-50% increases in steel bar stock costs since January 2021. Additionally, some sizes and alloys are simple not available. We're hearing from the warehouses that they expect pricing to level off the 3rd quarter this year, but no decreases in sight.

[Eric Bong]

I just got a bunch of ducting from blastgateco in May. The surcharge then was 6%.

[Jim Becker]

Blastgate is now at 10% surcharge, but that's still less than Nordfab. They seem to have a 35% off sale, at least that's how the downloadable catalog is showing things...probably best to contact them for clarification.

[Bill Dufour]

A 20% surcharge would be reasonable if it applied to the cost of the steel. But, there is very little steel in ductwork. I bet total is well under half a ton for a complete commercial shop. today steel is around $1,500 a ton. about double the cot from one year ago.
Most of that surcharge is applied to labor and fuel cost not raw materials.
Bill D

[Jack Frederick]

I do a fair amount of steel work, table bases, gates, fences, etc. Steel prices about doubled in ‘17 when the tariffs hit. It was an opportunity to take some profits and it was effectively done. The same happened the beginning of this year and it is complicated by supply chain issues with the pandemic. My supplier wouldn’t hold prices for a week. He is a small vendor simply could not keep up. I did a bunch of metal roofing and siding on the shop and follow Western States Metals site and they are getting hammered with futures increases. Wood, metal, whatever, if you can find it, it will cost more and it is going to take time to settle out. For my part, I’m sidelined for the most part and not taking on anything requiring a lot of new material.

[Jim Becker]

Just as a program note, I ordered clamp together duct from BlastGate Company today. The "sale" prices on their web site are valid for the individual components but they are, as noted above, adding a 105 steel surcharge on the steel items as a lump sum. THings like aluminum blast gates, hose, etc., do not get the extra charge. I was very impressed with how quickly they responded to my quote request and a simple phone call to provide payment was all that was needed to complete the transaction. They ship in 2-3 days and shipping time for my location is about two days.

[Thomas Wilson]

Just as a program note, I ordered clamp together duct from BlastGate Company today. The "sale" prices on their web site are valid for the individual components but they are, as noted above, adding a 105 steel surcharge on the steel items as a lump sum. THings like aluminum blast gates, hose, etc., do not get the extra charge. I was very impressed with how quickly they responded to my quote request and a simple phone call to provide payment was all that was needed to complete the transaction. They ship in 2-3 days and shipping time for my location is about two days.Do you have any Blastgate info on leakage per foot of pipe or per clamp at a specified pressure?

[Jim Becker]

Do you have any Blastgate info on leakage per foot of pipe or per clamp at a specified pressure?

No. I've never considered it. I don't see any specs on their site or in the full, downloadable catalog (https://blastgateco.com/pdf/Clamp-Together-Catalog-2021A.pdf). The Grizzly quick connects I've used to-date seem to seal really well, however, and I would imagine that the product from Blastgate would be at least as good. I suspect that this small network for my temporary shop will be "less leaky" than the snap-lock network at the old shop for sure!!