Sandvik Materials Technology is to reduce the time lag on its alloy surcharge model for seamless tubular products. The change will come into effect from January 1st, 2009 when the rates from November 16th to December 15th, 2008 will be debited. The new formula will be based on the average alloying costs for one month. Sandvik established the current European alloy surcharge model for its stainless steel products in 1993 in order to better reflect fluctuating alloy material prices. Once calculated, the alloy surcharge is added to the base price of stainless steel. The source of the individual alloy rate is taken from Metal Bulletin’s, LME, average ‘midday’ rate. By reducing the time lag Sandvik believes it will make the alloy surcharge model more transparent and a closer reflection of current market price trends.