NEW YORK ATI Allegheny Ludlum Corp. will institute a two-part base price increase on several of its stainless steel products, similar to recent announcements from two of its peers.
Effective with shipments beginning on Aug. 1, 2013, ATI Allegheny Ludlum is increasing base-selling prices for all 200-series grades, 300-series grades, and ATI 430 cold-rolled sheet and strip, hot-roll and cold-rolled tubular quality sheet and strip, and Precision Rolled Strip products, the company said in a letter to customers.
This price increase will be achieved by reducing the functional discount by two percentage points. The polish discount on all grades will be lowered by 10 percent. ATI Allegheny Ludlum is also increasing base-selling prices by 4 cents per pound on all hot-roll and continuous-mill plate and plate-mill plate products.
The company will enact identical price increases effective with shipments on Oct. 1.
Ludlum, a division of Pittsburgh-based Allegheny Technologies Inc., said the move is necessary to support continued growth and investment in our business.
North American Stainless Inc. and AK Steel Corp. announced similar base price increases on July 29 and July 30 respectively (amm.com, July 30
ATI and other stainless steel producers have struggled to establish higher base prices for a sustained period in 2013, with ATI chairman, president and chief executive officer Richard Harshman telling AMM
in May that announced base price increases effective May 6 had failed to take hold in the market (amm.com, May 14
When you see a base price increase that is meaningful and holds for a sustained period of time, that is indicative of improving fundamentals, he said at the time. Until you see that change, which has to be a fundamental drive, the stainless market is going to be a challenge.