For highly engineered or proprietary metals where it is not practical to assess the spot market, there is still a need to understand the current value of these commodities for material cost planning or scrap valuation. The Alloy Calculator allows you to calculate the current value of raw materials in their specific composition for any metal you purchase or sell.
Calculate the total cost related to production of alloys, including fixed costs — such as freight, transportation and commissions. Determine the cost of a finished product using Argus’ assessed metal prices as a variable cost and user-provided fixed costs for melting, processing and finishing. This eliminates the need to constantly update external spreadsheets with current raw material costs to calculate your overall exposure.
Identify the current market value of secondary materials — what percentage of the original value will you get back? Understand its current value so that you can define your negotiating strategy accordingly and achieve the highest recovery value for your scrap.
Surcharges are complex, but this tool allows you to track the underlying costs in real time, so that you can plan for the coming month. Surcharges are posted monthly, but some of the raw material costs move on a daily basis. This tool gives you a mechanism for tracking all of the individual cost components in materials that are subject to surcharges.
Advantages of Alloy Calculator
- Powerful for creating cost estimates for highly-engineered materials that are manufactured to your company’s specification and for which there is no spot market to assess
- Provides a mechanism for calculating the current scrap value of your custom material by formulating a price based on the intrinsic value of its ingredients
- Not just useful for alloys, any combination of materials can be used to create a synthetic price
- Retains history of your custom-built price for performance analysis over time
- Compare the cost of substitute materials or vary the composition of raw material percentages in your alloys to detect the best material qualities at the lowest cost
- Create multiple versions of your custom alloy in different currencies and units of measure to detect cost advantages
Call today and let us show you how the Alloy Calculator can help you plan, manage and anticipate complex variable material costs.