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
"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
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
"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