Scrap-Surcharge (SCV) & Energy complement

Understanding Scrap Surcharge

At Winoa, our steel shot and grit production relies on steel scrap as a fundamental raw material. Given the dynamic nature of the steel scrap market, we implement a Scrap Cost Variance (SCV) to ensure transparency in our pricing. This approach guarantees fair pricing on all deliveries, reflecting our commitment to transparency and responsiveness in the dynamic steel scrap market. This SCV is based using local scrap indexes. To provide a steel abrasive price quote, we incorporate the SCV, EC, and freight charges into the value-driven base price. This comprehensive approach ensures transparency and accuracy in our pricing.

Understanding Energy Complement

The term “energy complement” in the context of the shot abrasive manufacturing involves an additional cost adjustment applied transparently to support the energy consumption needed to produce steel abrasive and address the impact of rising energy prices on pricing structure. This transparent approach is based on local energy indexes and CO2 emission allowances, providing a clear approach on our cost structure.

In conclusion, our commitment to transparent pricing, demonstrated through our steel and energy complements, aim to provide a fair, comprehensive and responsive approach, protecting our customers and Winoa from the ongoing volatility in steel and energy markets.