Three weeks after warning investors that it expects to book a net loss in Q1, Ohio steelmaker AK Steel announced a move that might help it to eke a bit more profit out of its business: It's raising prices on stainless steel.
On Friday, AK confirmed that, beginning May 6, it will be charging higher "base" prices for all 200, 300, and 400 series flat-rolled stainless steel products that it ships. Functionally, this will be accomplished by reducing the discount it offers customers on "cold rolled and hot rolled non-automotive exhaust products" by two percentage points -- thereby raising the final price of the product.
AK expects to impose a $0.03-per-pound price hike on automotive exhaust products effective June 3.
Regardless, AK shares were down 2.6% in Friday trading, closing at $3.06.
The article AK Steel Raising Stainless Prices originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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