Rolex cancels corporate orders! Steel shortage!

[doboy007]

Originally Posted by HiBoost

I heard on TikTok that America's infrastructure bill was calling to rebuild all our bridges using 904L exclusively. So the shortage story seems to check out.

Ah, that totally makes sense now

[SS Oyster]

No steel shortage …



You don’t see shortages at Omega, and they will sell just as many watches as Rolex this year.


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[Stan Cooper]

Originally Posted by SS Oyster

No steel shortage …


You don’t see shortages at Omega, and they will sell just as many watches as Rolex this year.

Maybe Omega was smart enough to stockpile a supply of the stainless alloy they use? The shortage was foreseen as early as last November.

FAIR USE.
Terrible Stainless Steel Shortage: Jobs at risk

Originally Posted by steelnews.biz

In a nutshell, what’s the deal with this crazy stainless steel shortage right now?
Aided by the Corona pandemic, serious structural problems in the global production, supply and distribution of steel and stainless steel have been evident since November 2020. European and American steel producers no longer manage (or do not want to manage) to fully supply their markets. In addition, the USA and EU have imposed strict import restrictions which make it almost impossible for most stainless steel purchasers to reliably buy material abroad.

Result: Massive shortage of steel and stainless steel
The result is a massive shortage of steel and stainless steel in Europe and the United States. Prices are exploding. Lead times for some grades of steel have now reached December 2021. Or certain grades of stainless steel are not to be produced at all in 2021. Companies in the downstream industry will have to scale back production or shut down altogether. Hundreds of thousands of jobs are at risk of being lost.

For many purchasers and companies, the question is hardly one of price, but whether urgently needed steel or stainless steel is still available at all!

Metal processing downstream industry cries for help
Calls for an end to Safeguard measures and Section 232 tariffs are ringing loud and clear through the halls of politics. But domestic steelmakers continue to try everything they can to prevent a smooth supply of steel and stainless steel.

But instead of saving millions of jobs in the downstream industry, which has been battered by the Corona pandemic, the EU continues to give away billions in taxpayer money and subsidies to domestic steelmakers.

[calebb90]

Sounds like your AD about to lose their status.


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[Mendota]

Originally Posted by Finslayer83

Because of this thread I asked around to some industry folks (US).

" Never seen anything like this. Historic price increases. Can't even ship some products. There's practically no stainless in the US right now. "

Yup. A client of mine is in contract freight procurement for big corporations and he said it's unreal what is going on with all of the shipping containers coming from China.

He said a container would usually cost $1500 but is now costing over $10,000. That's with the slowest delivery. If you want it expedited, he said people are paying $20,000 or more. That's just to get it to Long Beach. Now you have the dock workers problem. They were used to emptying 3-4 containers per day at $250 per container. With the plummet in shipping containers, they went from 3-4 a day down to 1 per day. The dock workers are pissed that they are only making $250 a day instead of $750 to $1,000 so they are striking.

For a while there were literally cargo ships off the coast of Cali just circling around or parked because they couldn't get anyone to empty them.

I have been trying to purchase a pizza oven, tools, and a stainless table and anything made of steel is on infinite back order. I am not joking. Go to Amazon, Walmart, Sams Club, or any of the kitchen supply sources and try to find stainless steel tables. Only the little ones that nobody actually wants are in stock. Almost everything else is on back order. Stainless tools? Back order. Even suppliers in Italy for stainless tools and accessories are all on back order. I switched over aluminum for my tools, and I was finally able to find a kitchen supply source for a prep table that had my size because they had ordered a few too many last year before all of this insanity started. They said it's crazy. This is coming from a major kitchen supplier of stainless steel sinks, tables, cabinets, faucets, you name it.

[Polar Bear]

So, you're saying Rolex is on a waitlist for Stainless Steel now?

[Tanalasta]

I thought Rolex made their own steel….


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[Chester01]

Hmm no such shortage at the gray dealer down the street though. Funny about that.

[WatchGuy1966]

Originally Posted by Madman37

Let’s see if this steel shortage or no order policy impacts DavidSW.

if it does, he will make even more profit

[Polar Bear]

Originally Posted by Tanalasta

I thought Rolex made their own steel….


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I doubt they mine their own iron ore from their own mine though

[Francist]

Funny if Rolex themselves are put on the waiting list.

Anyhow, there is no shortage of steels. There's only shortage of "cheap" steels. China is stockpiling them up to their eyebas & shipping cost to the west has gone skyrocket 3-5times what it used to be.

Also, no AD can place an order on any model unless they're not on the catalog, such as rainbow stuffs & full blinged YM.
Rolex allocate each AD however they see fit, if AD suddenly gets massive 28mm & celinis they have no choice but to swallow it up.

[omar10213245]

Originally Posted by HiBoost

I heard on TikTok that America's infrastructure bill was calling to rebuild all our bridges using 904L exclusively. So the shortage story seems to check out.

oooweee! can't wait, gonna be niiiiice driving on bridges made out of 904L!

[Sub*Man]

Originally Posted by Danny83

This is true also as of last week no more gold watches can be ordered.

I was told the same, after I ordered my YG DD.

[Fleetlord]

I'm not sure if Rolex is directly affected by the qty and quality of steel they buy, but there is most definitely a shortage of all manufacturing materials....including steel, that is stunting production of countless products in many industries.

The causes (or even the validity) of this are of course debatable, usually on Internet forums and comment boxes attached to news articles, but the suppliers of said materials don't debate at all...it's going to cost you this much and you will wait this long or longer. Take it or leave it...there isn't much choice in the matter unless companies shut down production in protest in hopes of "exposing" the mistruths about availability, thus lowering prices and getting supplies much faster.

I've yet to meet anyone willing to do that. Maybe Rolex is right now?

[Andad]

We have been bidding on 40ft containers from China and recently had one cancelled on us due to a higher bid after acceptance.

Things are grim in this area and yes, $10k is becoming a starting point.

This is ok if you are importing height value low density items but no good for our product.

As for a shortage of 904L I would be surprised if Rolex were affected by this.

[Gazoak]

Originally Posted by Danny83

This is true also as of last week no more gold watches can be ordered.

I was under the impression that Rolex had their own gold reserves?

[WILLIWALKER]

Originally Posted by Danny83

This is true also as of last week no more gold watches can be ordered.

Yep, +1.

Earlier just before the summer, my AD and others had their taps cut off on gold and platinum models (DD40, GMT) because they had exceeded the annual cost.
Obligation to call back all customers, explain and reimburse the deposit

[GMT Aviator]

Originally Posted by Sub*Man

I was told the same, after I ordered my YG DD.

Same, tried ordering a Cellini a couple of days ago, probably the most accessible Rolex from an AD you would have thought?

Wrong again. Can’t even order one in.

[rambo99]

Originally Posted by Polar Bear

So, you're saying Rolex is on a waitlist for Stainless Steel now?

yes, rolex now need to start building relationships with suppliers to get 901 steel, buying Copper and plastic bottles that they don't want !

[Nairn1980]

Originally Posted by calebb90

Sounds like your AD about to lose their status.


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Why?

[SpiritSoul]

Originally Posted by Kyle3130

Agree, but massive global demand is the main issue.

everyone is blaming the Suez Canal incident earlier the year for the shortage of any raw material around the world. Even bricks and cements are on high "waitlist" demands at builder merchants around the UK

[TomLou]

Rolex buys more Gold and steel to last for 20 years of production
The excuse for global steel shortages is their way to see where steel stabilises so they can charge accordingly - they have bought at 1/3 the current steel price. I believe the current steel prices do not represent the true value and the bubble will burst, but by then the higher Rolex prices will stick.

[Goin2drt]

Originally Posted by Polar Bear

So, you're saying Rolex is on a waitlist for Stainless Steel now?

That is funny right there. Maybe they should call DavidSW

[1William]

Wow, I have heard some whoppers before but this is right up there at the top.

[inadeje]

This is a new one. What’ll be next, swiss oxygen shortage so none to put in the case prior to sealing?

[Marcjvr]

Well my AD told me Rolex only uses steel sourced from the lost undersea world of Atlantis using specially trained sea turtles to deliver it.

So we are good

[Swiss Mad!]

Originally Posted by Master_Grogu

Not enough scrap getting recycled.

I really don’t think Rolex use recycled scrap steel in their watches


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[rambo99]

white gold will be the new steel!

[AJMarcus]

Originally Posted by Gazoak

I was under the impression that Rolex had their own gold reserves?

True. And they develop proprietary steel as well.

[Musicfreak1988]

Maybe this (partly) explains the slower rollout of certain new models (dials) (?)