AK Steel Holding Corporation (NYSE:AKS) Increases Prices For Carbon Steel Products

0
680

AK Steel Holding Corporation (NYSE:AKS) announced recently that the price for the Carbon Steel products is likely to go up due to higher surcharges on the special steel products and the average selling prices on both the spot and contract market sales. The company predicts that the recent price increment would probably lead to the improved spot market prices soon.

The company expects to benefit directly from the high demand in the automotive market. AK Steel has for a long time concentrated on intensifying the core automotive business entity while focusing on the importance of de-emphasizing commoditized products and continues launching new products in the market.

The company is now developing the third-generation, innovative strong carbon steel products to be used by the automotive consumers that are considered stronger than the current offerings.

AK Steel accomplished the acquisition of the precision Partners Holding Company in August last year, for $360.9 million. The purchase is a combination of AK Steel’s advanced materials and the metal-forms from the Precision Partners’ tooling, stamping technology, and other capabilities. The acquisition is in line with the company’s commitment to expand its portfolio of high quality products, processes, and systems to enhance the value given to its customers.

The company is however, facing the raw material pricing pressure. Also, the electrical steel prices are under pressure especially in the foreign markets due to the overcapacity issues facing the world globally. Furthermore, the US market is experiencing elevated levels of imports of steel products.

The company made it public that it would increase the current prices for its carbon flat-rolled steel products by at least $30 per ton, effective immediately. The company noted that the prices for the steel products are more volatile today than it was expected due to the ongoing flooding of the imports in the global market. Last month, the company also announced a surge in the spot market for all the carbon flat-rolled steel products.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.