AK Steel Ups Stainless Steel Price - Analyst Blog

By
A A A

AK Steel Holding Corporation ( AKS ) 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 Rank include Nippon Steel & Sumitomo Metal Corporation ( NSSMY ), Ternium S.A. ( TX ) and Kobe Steel Ltd. ( KBSTY ). 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 Report

KOBE STEEL-ADR (KBSTY): Get Free Report

NIPPON STEEL CP (NSSMY): Get Free Report

TERNIUM SA-ADR (TX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AKS , KBSTY , NSSMY , TX

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

74%
50%

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com