Stainless base price hike needed: Harshman
May 14, 2013 | 01:24 PM
| Daniel Fitzgerald
NEW YORK Stainless steel prices are currently at "unsustainable levels," Allegheny Technologies Inc. (ATI) chairman, president and chief executive officer Richard Harshman told AMM.
Harshman said that the Pittsburgh-based companys recent attempt to implement a base price increase (amm.com, April 9) was aimed at bolstering margins after a 12-percent base price increase effective Jan. 1 failed to last.
"That price held for less than two months and began to erode, and today the price is back where it was at the end of 2012," he said. "Base prices, in my view, continue to be at unsustainable levels long-term, because no producer can make an acceptable return on capital employed."
Harshman acknowledged that the announced base price increase effective May 6 didnt take hold in the market (amm.com, April 24), which he said indicates ongoing weakness in stainless market fundamentals. He recently described demand as "sluggish" (amm.com, April 24).....
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