Middletown, Ohio-based AK Steel has informed its customers that it will increase transaction prices for all hot-rolled and cold-rolled stainless steel sheet, strip, tubular quality and continuous mill plate products by approximately six percent, effective with shipments as of November 12, 2007. The transaction price increases will be accomplished through a two percentage point reduction in the functional discount rate, which equates to approximately $70/nt.
AK Steel has also announced that it will increase spot market prices for its carbon steel products by $30/nt for all new orders accepted for shipment as of January 1, 2008.
On the other hand, the company has also announced that a $245/nt surcharge will be added to invoices for electrical steel products shipped in December 2007. AK's electrical surcharge for December represents an increase of $5/nt from the $240/nt surcharge applied to November shipments of these products. The company says that the surcharge is based on reported prices for raw materials and energy used to manufacture the products, with the October 2007 purchase cost used to determine the December 2007 surcharge.