AK Steel Impose Electrode Surcharge start on October 29th

AK Steel Impose Electrode Surcharge start on October 29th

AK Steel Holdings Inc. AKS announced that it will impose electrode surcharges on all stainless steel products shipped start on October 29th.

The move is to respond to the recent sharp increase in the cost of graphite electrodes, which is used by the company manufactures stainless steel grades in the steelmaking operations.

According to AK Steel, the monthly electrode surcharge will be included in the company’s monthly publication. The surcharge will be same for all stainless grades produced by the company. In Nov. 2017, electrode surcharge amount for shipments will be $13.20 per ton. AK Steel shares fell 7% in the past three months, the performance of less than 6.5% growth in the industry

In addition, the recently completed Precision Partners acquisition and AK Steel are committed to expanding the portfolio of high-value products and processes, while further promoting the company’s emphasis on the fast-growing automotive light industry and its position in advanced high-strength steel. It has also strengthened its cooperation with the company’s automotive market customers.

However, due to global overcapacity, AK Steel faces weak electrical steel prices. It is also exposed to volatile raw material pricing environments. The company expects the global electrical steel market to remain volatile in the near future due to overcapacity. AK Steel continues to face the pressure on profit associated with high input costs.

Source: zacks.com