AK Sponsor
Posted: 10/29/2014 10:54:26 PM EDT
| I have watched 5.56 go from around $400 to recently $290 for brass cased ammo, 7.62 on the other hand has stayed pretty consistant and hasn't fluctuated as much. Are prices on 7.62 as low as they are going to get or is it because sanctions on Russia and possibly import restrictions that keep the prices at around $220/k? |
| It's a little bit of everything. The embargo cut down on Russian imports - though most Russian ammo wasn't affected - and a fair amount of ammo coming in was manufactured at a Ukrainian plant that is under separatist control (and also subject to the embargo). So, essentially, what was a flood of imported ammo is now just a steady stream of imported ammo: no shortage but also no gross surplus. Prices have more-or-less returned to what they were before the post-embargo price spike this summer. |
|
One of the reason is that 223/5.56 prices went way way way higher in the rush of 2013 than 762x39 did. 223 brass case ammo was gobbled up for $600-$800/1000 for quite a while in that rush as demand forced market prices up, then its been on a long down hill slide to get back to normal. Vice 7.62x39 that only went up to $275-$325/1000 at most reputable sources, when strong supply helped keep up with demand. 762x39 prices never went high enough to see a dramatic decline. The price 762x39 should be in a stable market if $220-230/1000. The guys selling for $200 are just desperate to liquidate inventory that they have bought and are unable to sell at a profitable price, but cost on the KASP is $190 from the importer, so count $6 in merchant fees, labor costs, box, tape, other little costs that add up, its just recouping investment capital to sell at $200 with not a bit of profit for the business. A sign of desperate dealer when you see that behavior
|
AK Sponsor