NEW YORK (
) -- Stainless steel company
says that it will raise spot market prices in response to increased demand.
AK Steel says it will increase spot market base prices by $50 a ton, effective immediately with all new orders for its carbon steel products.
The company says the price increase has been implemented in response to greater demand for AK Steel's carbon steel products, as well as the need to recover higher costs.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.
AK Steel stock is trading up 4.1% at $22.55 in early morning trading.
In related steel news,
has seen its American depository receipts (ADRs) increase 1.4% at $37.90. Last week, the company's lower-than expected earnings on an adjusted basis and guidance prompted a selloff in the stock and
The company has expressed concern about a planned iron-ore joint venture between
, saying that this would exacerbate the trend of significant pricing power among suppliers.
"Although ArcelorMittal has substantial captive sources of iron ore and coal from its own mines and is expanding output at such mines and also has new mines under development, it still obtains a significant portion of its raw materials requirements under long-term supply contracts," the company says in a statement.
Rio Tinto ADRs have added 2.5% at $208.10 in pre-market trading, while BHP ADRs have gained 1.8% to $73.40.
-- Reported by Andrea Tse in New York
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