Copper, lead, and fuel prices plummet. Shouldn't ammo prices?

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Zoogster

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I was looking at the prices of raw metals used in ammunition and they have dropped tremendously from a year ago.
Gasoline prices are also the lowest they have been since 2004.

Is there some underlying reason ammo prices are not coming down? Are producers just using this as a time of increased profits until component prices rise again?

Comparing prices of ammunition in 2006 with now it seems ammunition costs nearly 40% more. Yet many of the costs associated with production and distribution should be even lower now than in 2006.

Copper is lower than it has been since 2005. Lead lower than the major price increases seen in 2007.
Shipping costs should be far lower with fuel prices at early 2004 prices.

Many of the major sources of demand are shrinking, from China to the auto industry.


Prices of raw materials are actualy falling to what they were 3-5 years ago, along with gasoline.



Shouldn't we start seeing ammunition prices of 3-5 years ago?

Will we see prices come down? Or will they just keep them high and make additional profits rather than drop them only to raise them again when costs increase once more?
 
The demand for the raw materials has dropped, that does not translate into drop in finished goods if the demand for said goods (ammo) has skyrocketed.
 
You can thank those who voted for BHO. However what you have may be all you get before long.

jj
 
I'm still waiting for postage on stuff I have shipped to me to go down. Wasn't the justification for the high price of stamps the high gas prices?
 
The ammo thats on the shelves and in production currently and for the forseeable future is being made from materials purchased when raw prices were high, consequently finished product prices will stay up for quite a while.

Correct. I shared a flight with a Federal (ATK) manager and they bought futures (hedged) before the collapse. They need to take delivery of (and use) the high priced stuff before they can get to cheaper/spot prices.
 
Did anyone else notice that the *fuel surcharge* the airlines introduced to help with fuel costs is still in effect?
 
Now that fuel is down from $4 to $1.50 or less, and scrap yards and recyclers are shutting down because of low prices on material, the price of ammo should be headed down. If not a lot, at least a bit.

Demand is up post-election, but jeez, if your material and fuel costs go down 2/3 or so, that ought to merit a price decrease. If not, I want some believable 'splaining.

Also, any airline that still charges a fuel surcharge (when fuel is cheaper now than before the charge began) should receive a blackball on any bailout or other government assistance. A pistol-whipping would not be out of line.
 
UPS has dropped their shipping prices, at least. Ammo prices may eventually come down, assuming Obama doesn't slap a massive tax on it with an Executive Order first thing.
 
Bulk material order contracts are often negotiated a good amount of time ahead of when it's actually needed, so it will take a while to come down - assuming prices stay down long enough for people to start signing new supply contracts.
 
UPS has dropped their shipping prices, at least. Ammo prices may eventually come down, assuming Obama doesn't slap a massive tax on it with an Executive Order first thing.

Oh please. The president can't levy taxes by EO. The Congress has not delegated that authority, the ammunition tax is set by law and would have to be changed in law. He could ban certain imports by using the Gun Control Act and maybe raise prices on certain types of foreign surplus ammo, but that is it.
 
Not keeping my fingers crossed or anything, but hopefully there will be an "Oboomerang" affect on both prices and political control.
 
I think we are still paying

for the raw materials that were purchased at the higher price.

Those higher-priced raw materials may still be in the factories and are being used to make the ammo produced today.

Eventually, when the raw materials that are less expensive start being used, I would think the lower cost would trickle down.

It doesn't help that everyone and there cousin seems to be stockpiling all the ammo they can. If that keeps up, we may not see any falling prices --- at all. We may actually see rising prices.

Again -- Supply & Demand.

You can liken it to oil prices. You hear of oil prices per-barrel coming down, but how long does it take until you see the decrease AT THE PUMP? Weeks? A month? Longer?

Let the price per barrel of oil increase and you see the price go up at the pump OVERNIGHT! In that situation, I have a word for it. GREED.
 
it will, it is just going to take a little while. our supliers had to buy their stocks at the high prices. when they sell all of their stock that they paid big bucks for, then the prices will come down. they are not going to loose money on what they bought. gasoline works quite differently. you buy what the oil company's THINK it will cost to manufacture, distribute, and make a margin on in the near futuer, not what it cost them to make that batch.
 
Panic buying and supply and demand should still not effect the prices more than the dramatic drop in costs.
In fact if they are turning over thier inventory that fast they have nothing to lose by negotiating new contracts for even cheaper materials, offsetting some of the materials purchased at higher prices.

The quicker they get rid of materials purchased during expensive times the sooner they can drop prices. So "panic buying" should bring prices down faster.
It is not like people are purchasing ammo faster than manufacturers can produce it. If that was the case nobody would have any in stock.

It is a free market and they can do as they wish. However there seems an opportunity here for some serious competition.
 
Demand is up post-election, but jeez, if your material and fuel costs go down 2/3 or so, that ought to merit a price decrease. If not, I want some believable 'splaining.

Panic buying and supply and demand should still not effect the prices more than the dramatic drop in costs.

Why would there be a price decrease? They raised prices when materials went up to cover cost, and people continued to buy ammo. Material prices went down, and people bought more ammo at the previously increased price, because they were in a panic that they couldn't get it in the future.

If you are selling everything you are making, you keep the prices high to maximize profit. Copper and brass and lead could be free, they'd still price ammo as high as they could sell it at.

As long as gun goods are flying off the shelves, don't expect prices to drop much.
 
Also, any airline that still charges a fuel surcharge (when fuel is cheaper now than before the charge began) should receive a blackball on any bailout or other government assistance. A pistol-whipping would not be out of line.
Umm, wow. A pistol-whipping? Really? How very High Road of you. Perhaps you'd like to read about fuel price hedging by the airlines and reconsider your advocacy of battery.
 
Makers bought materals at high prices months ago. Now they will be buying metals cheap and drop prices. As the war in iraq ends further discounts will come. Add the crazy nuts who think they need 50,000 rounds hurt prices, but they will not have any money left as the economy tanks and will be forced to sell as well. Wait if you want to buy.
 
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