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lead prices


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One of the problems that cartridge manufacturers face is that there is a general assumption that prices on components and commodities that make up a cartridge will rise, and in order to stabilise the price list, most are contracted for 6 months in advance at an agreed price on the bits that make up their production. In the metal market, that means covering your lead deliveries on the futures market.

 

What this does is soften increases, prices can stay down for 6 months at a fixed rate and the buyers benefit.

 

Where it goes wrong, is when there is a significant fall, and those buying "spot" lead can buy it 10-20% less than those committed to a future they took out months ago.

 

The fact is simple, prices take time to come down because the incoming supply price was fixed months ago, and all those futures need to be delivered and expire before the manufacturer can take advantage of the new lower rates. Most of the time this works to us, the consumer's, advantage, while prices are rising. The same has happened in oil, prices of crude dropped some time ago, but its only now a few months later as the futures commitments of the retailers expire that the pump prices are dropping significantly. Give cartridge prices a little more time and they will drop.

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Clayman,

 

I understand entirely what you are saying, but why is it that cartridges almost went up on a daily basis if the manufacturers contract supply for six months in advance. When I asked in my local gunshop when prices were going to come down there were two reasons why they won't. Fuel was one (Which is now cheaper) and the fact that suppliers would have stocks at the old higher prices which if the price fell as quickly as it went up they would be left with.

 

As I said earlier it is Rip Off Britain all over the place.

 

Although that said if cartridges had gone up with inflation over the last 20 years they would be a lot dearer than they are now. For as long as I have been shooting cartridges were always around £100 a 1000. You could always get cheaper ones (Baikal Record) or premium ones But for the run of the mill ones they were around £100

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