AK Steel Holding Corporation
) will hike the base prices for 200, 300 and 400 series flat
rolled stainless steel products. The price rise will be effective
with shipments from Aug 1, 2013. A reduction in the functional
discount of 2% points for cold rolled and hot rolled
non-automotive exhaust products will allow the price increase.
AK Steel will also increase prices on all of its stainless steel
products effective with shipments from Oct 1, 2013. The price
increase will result from a reduction in the functional discount
of an additional 2% points for cold rolled and hot rolled
non-automotive exhaust products.
In addition, AK Steel has planned to raise the base prices for
automotive exhaust grades in the range of 2 cents to 4 cents per
pound, depending on the grade, effective Oct 1, 2013. AK Steel's
surcharges for the broad range of stainless steel products will
remain in effect.
Prior to this, AK Steel had raised its base prices for all 200,
300 and 400 series flat rolled stainless steel products on Apr
12, 2013, which was effective with shipments on May 6, 2013.
AK Steel also increased the price depending on a reduction in the
functional discount of 2% points for cold rolled and hot rolled
non-automotive exhaust products. AK Steel expected the base
prices for automotive exhaust grades to increase by 3 cents per
pound, and it was effective with shipments on Jun 3, 2013.
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.
However, in the wake of lower demand, it becomes increasingly
challenging to pass on raw material price hikes to consumers.
Furthermore, overcapacity, abundance of cheaper Chinese steel
imports, economic conditions and shifts toward other substitutes
significantly impact steel prices.
AK Steel currently carries a Zacks Rank #3 (Hold).
Other companies in the steel industry with a favorable Zacks
Nippon Steel & Sumitomo Metal Corporation
Kobe Steel Ltd.
). While both Nippon Steel and Ternium have a Zacks Rank #1
(Strong Buy), Kobe Steel carries a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
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