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. DATASOURCE: Wheeling-Pittsburgh Steel Corporation CONTACT: Jim Kosowski of Wheeling-Pittsburgh Steel Corporation, +1-304-234-2440 Web site: http://www.wpsc.com/ Company News On-Call: http://www.prnewswire.com/comp/967451.html
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