President and CEO of West Chester, Ohio-based AK Steel James L. Wainscott discussed plans to grow AK's contract business while moving away from the spot market. Contracts make up about 55 percent, with spot making up the remaining 45 percent of AK Steel's business, but Wainscott said that while AK sees strength in the contract market, "the spot market is less robust" and there is "a fair amount of increased import pressure."
During the question-and-answer portion of the conference call, Wainscott commented that the flat-rolled spot market, and order entry rates are "a little sloppy right now," and order intake rates continue to experience downward pressure. Wainscott also noted that "the carbon market is depressed," and at current prices, not many people can sell flat-rolled steel and make a profit--"hopefully this ends soon," added Wainscott.
Until then however, Wainscott explained that buyers are in a cautious mode as lead times remain extremely short, and service centers are only buying what they need. Referencing current reports of overcapacity in the marketplace, Wainscott affirmed that AK Steel "will continue to compete" and "fare well against the competition--old and new."