| Dear Customer,
For shipments on or after June 1, 2026, we’re implementing a 2.25% price adjustment on all CSC steel pail and tin pricing, FALCO USA pricing, as well as all Lancaster Container pricing.
This is a mid-quarter adjustment (something we rarely do) but recent cost increases over the past 90 days have made this step necessary despite our efforts to hold pricing.
We have absorbed as much of these increases as possible. This adjustment reflects a shared approach rather than passing the full impact on to you.
We want to provide transparency into what is driving this change so you can plan accordingly.
| Energy and Freight Costs Are Surging
You’re seeing it at the pump, and we’re seeing it across our entire business. According to U.S. Energy Information Administration data, diesel has climbed from $3.81 per gallon in late February to over $5.64 per gallon this week (that’s a nearly 50% increase in just over two months). Regular gasoline is approaching $4.00 per gallon nationally, and several Midwest states including Ohio are closing in on all-time diesel records.
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Much of this increase stems from ongoing global oil supply disruptions, which have driven significant volatility in crude prices and fuel costs. Brent crude has swung between $70 and $126 per barrel since February.
The EIA is forecasting elevated fuel prices through the rest of 2026, and that affects everything from inbound raw material deliveries to outbound shipments to your dock. This is by far the biggest reason for this price change.
| The Broader Cost Environment
Unfortunately, it’s not just fuel at the pump. The same crude oil disruption is driving up costs for the raw materials that go into manufacturing our pails. Resins, solvents, and industrial coatings are all directly tied to oil and chemical supply chains. Since March, more than 20 coatings and chemical companies globally have announced price increases, with some raising prices as much as 50%.
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The IMF’s Global Commodity Price Index jumped 15% from Q4 2025 to Q1 2026, the sharpest quarterly increase in over two years. Independent trade analysts estimate the effects of this kind of sustained cost volatility can take up to 19 months to fully work through the supply chain.
| Tariffs Are Compounding Across the Supply Chain
Section 232 tariffs on steel were doubled to 50% last June, and the administration tightened them again on April 2nd. This expanded coverage to derivative products and applies duties to the full customs value of imports, not just the metal content. For manufacturers like us, that means higher costs on everything from imported coatings and components to replacement parts and equipment.
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Tariffs are also compounding costs across the supply chain. Recent changes expanded coverage and increased duties on a broader range of imported materials and components.
While we source most of our steel domestically, these tariffs still impact coatings, components, and equipment, all adding costs we cannot fully offset.
Your CSC sales manager is available to review how this adjustment affects your specific products and answer any questions.
We appreciate your continued partnership and your understanding as we navigate these cost pressures together.
We will continue to focus on reliability, service, and quality while working to minimize further adjustments.
Sources
Federal Reserve (FRED) – U.S. Diesel Prices
Federal Reserve (FRED) – U.S. Gasoline Prices
Wall Street Journal – Commodities
ECHEMI – Coatings Industry Price Increases (March 2026)
Federal Reserve (FRED) – IMF Global Commodity Index
Financial Times – Oil Price Volatility & Trade Outlook
Brownstein – Section 232 Derivative Product Tariffs (April 2, 2026)
Tax Foundation – Tariff Tracker
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