| Dear Customer,
For shipments on or after July 1, 2026, we’re implementing a 3.30% price adjustment on CSC steel pail products.
This adjustment applies to CSC steel pails only. Pricing for Tin can products and FALCO USA is not affected by this change.
We recognize this follows closely on the heels of our June 1 adjustment. June reflected the surge in energy, freight, and tariff costs, while this Q3 adjustment is specific to the continued rise in cold-rolled steel. Both are largely outside our control, and in each case, we’ve absorbed as much as we reasonably can, but the market has moved steadily upward with no sign of leveling off.
We want to give you full transparency into what’s driving this so you can plan accordingly.
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Cold-Rolled Steel Keeps Climbing
Cold-rolled coil, the steel that goes directly into your pails, now averages $1,260 per short ton as of May 19, up another $5 per short ton week over week, according to Steel Market Update. Supply is tight enough that cold-rolled lead times have stretched to an average of 8.4 weeks, with some mills quoting as long as 11 weeks.
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A Market With Very Little Slack
Steel demand is the strongest it has been in years: 44% of buyers in SMU’s latest survey reported increasing demand, the highest reading since June 2021. At the same time, inventories have fallen to their lowest level since May 2021, and domestic raw steel production hit a six-year high in mid-May with mills running at 82.2% capacity utilization. When demand is high and supply is scarce, prices rise, and that pressure goes straight to the steel we buy.
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Why We’re Adjusting Now
SMU’s price momentum indicator continues to point higher, signaling further increases in the near term. Their May 19 market report was headlined with the observation that there are “few signs of a peak with demand strong and spot tons scarce.” Rather than chasing the market with repeated changes, we’re making a single adjustment to a level we believe we can hold until Q4.
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One more note: we’re heading into our busy season, and lead times have extended across our pail plants. If you have upcoming orders, planning ahead will help us protect your production dates.
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Plain Pails
Kilgore Plant – 6 Weeks
Niles Plant – 6 Weeks
Peotone Plant – 4 Weeks
Quakertown Plant – 6 Weeks
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Litho Pails
Kilgore Plant – 7 Weeks
Niles Plant – 8 Weeks
Peotone Plant – 5 Weeks
Quakertown Plant – 7 Weeks
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Lead times are updated twice a week on our website: cscpails.com/capabilities/current-lead-times/
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. |
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