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.