) said that it is raising the current spot market base price for
its hot roll carbon steel to at least $700 per ton. The price
hike is effective immediately with new orders. The company, last
month, raised the price for the product to $660 per
AK Steel should gain from strength in the automotive market
and higher shipment of steel products to automakers. The company
is expected to continue to gain automotive market share, driven
by continued healthy demand for its carbon and specialty steel
products. The company expects higher shipment of carbon and
stainless steel products to the automotive market in 2014.
AK Steel is also investing to procure about half of its iron
ore and coal requirements internally. It is making good progress
with its first coal mine at AK Coal and its iron ore pellet
project at Magnetation. Both these strategic investments are
expected to improve the company's cost structure and strengthen
its position in the years ahead.
However, AK Steel expects to post a loss in the first quarter
of 2014 as higher energy costs and an unplanned outage at its
Ashland Works blast furnace are expected to drag down its bottom
line. The cost of natural gas and electricity is expected to
increase due to cold weather.
Nevertheless, AK Steel should benefit from the favorable
pricing trend for key steelmaking raw materials such as iron ore,
coke and coal this year. Declining prices for these inputs should
acts in its favor.
AK Steel expects to gain from lower input costs, mainly for
coal and coke, starting the second quarter. It sees a year over
year decline of around $70 million in coke and coal costs in
AK Steel is a Zacks Rank #3 (Hold) stock.
Other companies in the steel and related industries with
favorable Zacks Rank are
Century Aluminum Co.
Norsk Hydro ASA
), with all retaining a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
CENTURY ALUM CO (CENX): Free Stock Analysis
NORSK HYDRO ADR (NHYDY): Get Free Report
NN INC (NNBR): Free Stock Analysis Report
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