MADMAN

iTrader: (4)

The current business climate that the steel manufacturers are going thru has driven up the cost of steel from vendors to fabrication shops. The price has risen $.45 to $.65 on the dollar for most of our chromemoly steel. The prices are expected to continue to rise through the summer..

The excuses we are getting from our suppliers is that China is buying all the scrap steel from the USA adding to the large supply and demand gap. This has been compounded by manufacturers "panic" buying. NOBODY can predict when the market will stabilize.

This has caused two major problems at JBZ Race Cars/Madman & Co Racing. The first is our raw material costs have gone thru the roof, second the vendors are backordering large quanities of steel to us.

We have absorbed alot of the cost thus far BUT as of March 30 2003 we will be TEMPORARILY raising our prices. The current pricing will be lowered back to normal unless the steel markey stays unstable for a
lengthy period of time






Thank you

Brian Jeffery
JBZ Racecars/ Madman & Co. Racing

equandt

iTrader: (2)

This is true. All of my steel vendors are telling me the same thing. I've placed a $300,000 project on hold because of the wildly fluctuating steel prices

DenzSS

Yup, its true. Prices are fluctuating like crazy.