AK Steel Announces January 2005 Surcharges

Company cites raw material, energy costs in November as basis for hike.

AK Steel advised its flat-rolled carbon steel customers that a $205 per ton surcharge will be added to invoices for products shipped in January 2005, an increase of $52 from December's surcharge of $153 per ton.

 

AK Steel also announced that its electrical steel customers will have a $400 per ton surcharge added to invoices for electrical steel products shipped in January 2005, up $140 from the December surcharge of $260 per ton for those products.

 

The surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the November 2004 purchase cost used to determine the January 2005 surcharges.

 

AK Steel has modified its surcharge calculation for carbon steels, effective with shipments on and after January 1, 2005, to include purchased coke, iron ore pellets and hot briquetted iron, in addition to natural gas, carbon scrap, purchased slabs and coal. AK Steel announced in November that it would make modifications to its surcharge calculations beginning in January 2005 for these products.