Ugine & Alz changes alloy surcharge formula

Ugine & Alz changes alloy surcharge formula

Ugine & Alz , Arcelor's European stainless steel division, announced on Friday that it will change its alloy surcharge formula in an effort to enhance pricing transparency. In line with the new formula, the company is introducing a titanium and niobium component into the calculation of its alloy surcharge as of July 1, 2005 in order to better reflect the costs. Moreover, the company will change the reference period for raw materials from 2-3 months prior to the delivery month to 1 month prior to the delivery month, as of November 1, 2005. The company stated that the new formula will be closer to the evolution of the prices of alloying elements.