WHEELING, W.Va., March 21 /PRNewswire-FirstCall/ -- Wheeling-Pittsburgh
Steel Corporation (Nasdaq: WPSC) announced that, effective April 1, 2007,
it will institute a $53 per ton Raw Materials Surcharge on orders scheduled
for April shipment.
"The continued volatility of steel scrap has made it necessary for
Wheeling-Pittsburgh to develop a methodology for administering a scrap
surcharge," said Thomas E. Mihelcic, Vice President-Commercial. "We believe
our calculation provides a fair way for Wheeling-Pittsburgh to capture the
growing portion of our production that is influenced by the highly volatile
scrap market."
To calculate the surcharge, Wheeling-Pittsburgh Steel will subtract its
surcharge baseline of $295 from the AMM Pittsburgh No. 1 Busheling price
and multiply that figure by the percentage of its combined scrap content
for both its BOF and EAF operations. Current scrap content of the combined
steel production is 70% and can change based upon operations.
The base period for scrap surcharge calculations will be February 20,
2007 for all sheet products as follows:
AMM Scrap Iron & Surcharge Scrap Scrap April 2007
Sheet Consumer Baseline Change Content Monthly
Buying Price February 20, Surcharge
(Pittsburgh No. 1 2007
Busheling)
$370 Per Ton $295 Per Ton $75 Per Ton 70% $53 Per Ton
Wheeling Pittsburgh has taken all steps necessary to control costs and
still provide our customers with a high quality product. As the company
moves closer toward a mini mill steel producing company, scrap has become a
larger percentage of the raw materials consumed.
About Wheeling-Pittsburgh:
Wheeling-Pittsburgh was organized as a Delaware corporation on June 27,
1920 under the name Wheeling Steel Corporation. Its headquarters is located
in Wheeling, WV, with major production facilities in the Upper Ohio and
Monongahela valleys. Wheeling-Pittsburgh is a holding company that,
together with its several subsidiaries and joint ventures, produces steel
and steel products using both integrated and electric arc furnace
technology. The Company has slab making production capacity of 2.8 million
short tons and hot rolling capacity of 3.4 million short tons.
Approximately 65 percent of its sales are comprised of high value-added
products.
SOURCE Wheeling-Pittsburgh Steel Corporation
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Related links:
http://www.wpsc.com/
http://www.prnewswire.com/comp/967451.html/
CONTACT:
Jim Kosowski of Wheeling-Pittsburgh Steel
Corporation, +1-304-234-2440
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