WEST CHESTER, Ohio (AP) -- AK Steel Holding Corp. said Monday it will raise base prices for all 200-, 300- and 400-series flat-rolled stainless steel products by 6 percent to 9 percent starting Jan. 3.
AK Steel is a supplier to the U.S. auto industry. Automakers ramped up production in recent months in response to the government's successful Cash for Clunkers program.
The steel producer said the price hikes will depend on the grade and form of the products and will be achieved by reducing discounts by 2 percentage points for cold-rolled and hot-rolled products.
Base prices of automotive exhaust grades will increase by 4 cents per pound. All surcharges for stainless steel products will remain in effect.
Like other steel companies, AK Steel has faced sharply lower demand since late last year, when the economic downturn undermined important steel buyers in the auto and construction industries. That forced AK Steel to lay off workers and idle plants.
AK Steel shares rose $1.38, or nearly 8 percent, to close at $18.77.
