WEST CHESTER, Ohio (AP) -- AK Steel Holding Corp. said Monday it will add a $165 per ton surcharge to electrical steel products shipped in February.
AK Steel Holding is responding to volatility in the natural gas and scrap steel markets, spokesman Alan H. McCoy said in an interview.
The February surcharge is based on the December 2008 purchase cost, he said.
The company, which adjusts its surcharge monthly, set it at $10 last month, he said. AK Steel Holding does not disclose transaction prices, so the percentage increase in the cost of electrical steel products cannot be calculated.
AK steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.
During the first seven months of 2008, steel prices rose as demand from China helped drive up the costs of steel-making materials such as iron ore. Orders for steel products began to subside in August, as China's expansion slowed and the steel-intensive construction industries in North America and Europe weakened.
Shares jumped 72 cents, or 7.1 percent, to $10.93 in midday trading.
