Raw material shortage pushes Rouge Steel for surcharge

Raw material shortage pushes Rouge Steel for surcharge

The US integrated flat rolled carbon steel producer Rouge Steel Company released an announcement stating that it will have difficulties in meeting the entire steel demand for the first quarter of 2004. This is mainly due to the force majeure declared by the mill's coking coal supplier. In consequence of this situation Rouge Steel also had to declare force majeure and explained that it will not be in a position to support the non-contract hot rolled steel product orders during the first quarter. Furthermore, a surcharge of $20/ton will be applied for all January orders, according to the company statement. Surcharge amount to be applied for the subsequent months will be declared at a later date. It is understood that the limited coke availability is putting pressure on the mill's production. Therefore all new orders are put on hold. It appears that the lack of raw material supply is not expected to end soon.