LONDON Stainless steel producer Outokumpu Oyj will pilot a daily alloy surcharge system in Europe this summer, the company said May 22.
Speaking at its Outokumpu Experience event in London, chief executive officer Mika Seitovirta said the new system is expected to reduce price volatility.
"Our alloy surcharge system has served us well since the 1980s, but we are now investing in options to reduce volatility," he said. "We are going to pilot a daily alloy surcharge system to respond more quickly to price changes."
The program will be tested in Europe, where buyers will have the option to choose alloy price levels on the day of the order or at a time closer to delivery.
"This system is well tested in other materials, such as aluminium," Seitovirta said. "We are happy to start a dialogue with our customers."
A spokesman for the company told AMM that "there is no timetable to bring the daily surcharge model discussed in the announcement to the U.S."
Espoo, Finland-based Outokumpu earlier this year promised a response to proposals for the European stainless steel pricing system.
Fellow stainless steel producer Aperam SA, Luxembourg, also said earlier this year that it had begun discussions with buyers on using a daily alloy surcharge system similar to the one used in the aluminum industry.
Daniel Fitzgerald, New York, contributed to this story.
A version of this article was first published by AMM sister publication Steel First.