How do you calculate metal price sensitivity?

Multiply the weight exposed by the price change per pound and by the unhedged share, then add any fixed adder. For 200,000 lb at $0.05/lb fully unhedged with no fixed adder, that is 200,000 x 0.05 x 100% = $10,000 total impact.

What does unhedged share mean here?

It is the percentage of your exposed weight that floats with the market because it isn't covered by a futures contract, fixed mill price, or pass-through clause. At 100% the full tonnage moves with the market; at 40% only 80,000 of the 200,000 lb would be exposed.

What is a good price impact number?

There is no universal 'good' figure — the impact is good when it stays inside the contingency you built into the quote. If the $10,000 example exceeds your margin on the job, you are under-hedged or under-priced for that buy.

Hedging vs. surcharge pass-through, which reduces sensitivity more?

A hedge or pass-through that lowers the unhedged share cuts the variable impact proportionally, while a fixed adder only shifts the total up or down by a flat amount. Dropping unhedged share from 100% to 50% halves the $10,000 variable impact to $5,000.

Why is the impact per pound shown as $0.05?

Because with a fully unhedged buy and no fixed adder, the total $10,000 divided across 200,000 lb returns exactly the price move you entered. The per-pound figure rises above the raw move once a fixed adder is spread over the weight.

Does this work for aluminum and copper too?

Yes — any metal priced per pound works. Just enter the right weight and the per-pound move for that metal; copper's larger absolute price swings make the sensitivity far higher per pound than carbon steel.

Metals, Steel, Aluminum & Coil Processing calculator

Metal Price Sensitivity Calculator

Metal price sensitivity tells a buyer or estimator how many dollars a per-pound price move adds to or removes from a job once you account for the share of metal that isn't locked in by a hedge or fixed contract. Purchasing managers, service-center estimators, and CFOs at coil processors use it to size their exposure before a quote goes out or before a futures position is set. With raw material often 60-80% of a fabricated part's cost, a two-cent move on a heavy buy can erase a whole margin. This calculator turns a vague worry about 'rising steel prices' into a hard number you can put on a quote line.

What this calculator does

Estimate the cost impact of a metal price move from the weight exposed, the price change per pound, the unhedged share, and any fixed adder.
Use it when a metals buyer or estimator needs to size how a price swing flows through to total material cost on exposed tonnage.
It multiplies the unhedged weight by the per-pound price change to get the variable dollar exposure, then adds any fixed surcharge to give a total price impact.

Formula used

Variable price impact = weight exposed × price change × unhedged share
Total price impact = variable price impact + fixed cost adder

Inputs explained

Metal weight exposed to price swing:
Price move per pound:
Unhedged portion of the buy:
Fixed surcharge or contract adder:

How to use the result

Use it when a mill announces a price change or surcharge, before quoting a multi-month job, or when deciding how much tonnage to hedge.
It assumes a single uniform price move across the whole exposed weight; blended grades, tiered surcharges, or partial fills during the period need to be modeled separately.

Current U.S. benchmarks

The producer price index for steel mill products stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The producer price index for aluminum mill shapes stands at 404.859 (BLS, May 2026), up 36.8% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The producer price index for copper and brass mill shapes stands at 559.593 (BLS, May 2026), up 76.8% from a year earlier. Quotes priced off last quarter's material cost miss this move. Global copper trades at $13,484 per tonne (IMF via FRED, May 2026).

Common questions

How do you calculate metal price sensitivity? Multiply the weight exposed by the price change per pound and by the unhedged share, then add any fixed adder. For 200,000 lb at $0.05/lb fully unhedged with no fixed adder, that is 200,000 x 0.05 x 100% = $10,000 total impact.
What does unhedged share mean here? It is the percentage of your exposed weight that floats with the market because it isn't covered by a futures contract, fixed mill price, or pass-through clause. At 100% the full tonnage moves with the market; at 40% only 80,000 of the 200,000 lb would be exposed.
What is a good price impact number? There is no universal 'good' figure — the impact is good when it stays inside the contingency you built into the quote. If the $10,000 example exceeds your margin on the job, you are under-hedged or under-priced for that buy.
Hedging vs. surcharge pass-through, which reduces sensitivity more? A hedge or pass-through that lowers the unhedged share cuts the variable impact proportionally, while a fixed adder only shifts the total up or down by a flat amount. Dropping unhedged share from 100% to 50% halves the $10,000 variable impact to $5,000.
Why is the impact per pound shown as $0.05? Because with a fully unhedged buy and no fixed adder, the total $10,000 divided across 200,000 lb returns exactly the price move you entered. The per-pound figure rises above the raw move once a fixed adder is spread over the weight.

Last reviewed 2026-05-12.