AK Steel Raises Stainless Steel Prices

From Jan 1st 2014 on, AK Steel Holding Corporation (AKS) will hike the base prices for all martensitic products, precipitation hardening (PH) products, tensile rolled products, duplex products, bright annealed products and custom melt products or grades that are specific to the company. A reduction in the discount of 2 percentage points for these specialty stainless steel products will allow the price increase. Surcharges will be applicable on all stainless steel products.

From the steel industry's perspective, steel prices are generally volatile owing to the highly-cyclical nature of the global steel industry. Rising raw material prices have a direct impact on steel prices as higher raw material prices induce a corresponding increase in steel prices.

AK Steel posted a net loss of $31.7 million or 23 cents a share in third-quarter 2013, roughly 48% narrower than a loss of $60.9 million or 55 cents a share a year-ago. Barring one-time items (tax charges related to a valuation allowance for deferred tax assets), AK Steel's loss for the quarter was 12 cents per share.

AK Steel expects results to improve sequentially in the fourth quarter. AK Steel should benefit from the strength in the automotive market and higher shipment of carbon steel products to automakers.The company is also investing to internally procure about half of its iron ore and coal requirements. However, concern remains about the soft construction market and the weak steel pricing environment.