The West Chester, Ohio-based company said Thursday the July surcharges were based on reported prices for raw materials and energy used to make the steel, which is used in power transformers, lighting systems and electrical motors and generators. AK Steel used the May purchase cost to determine the surcharges.
The surcharges followed an announcement Monday that AK Steel will increase spot market prices for its carbon steel products by $20 per ton for new orders scheduled for delivery on and after July 1.
Like other U.S. steel makers, AK Steel has been forced to scale back production dramatically as the global recession and credit crisis hits major buyers of the metal in the automotive, construction and industrial equipment markets.
Among AK Steel's most important customers are General Motors Corp. ( GMGMQ.PK - news - people ) and Chrysler LLC, which have sought bankruptcy protection. According to court documents, GM owes AK Steel $9.1 million and Chrysler owes the company $6.6 million.
http://www.forbes.com/feeds/ap/2009/06/05/ap6511004.html
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