Swiss steel producer Timken Company reported a decrease in special bar quality (SBQ) steel prices and related costs in their recent Form 10-K filing. The availability and price of SBQ steel are subject to changes in supply and demand, commodity prices for ferrous scrap, ore, alloy, electricity, natural gas, transportation fuel, and labor costs.

Timken manages price variability of commodities by using surcharge mechanisms on some of its contracts with customers, which provides for partial recovery of these cost increases in the price of bearing products. The company believes that the number of suppliers of SBQ steel is adequate to support the needs of global bearing production.