Wheeling-Pittsburgh Steel announces raw materials surcharge

Wheeling-Pittsburgh Steel Corp. has 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 percent and can change based upon operations.