Alan McCoy explains that 'hot rolled steel' sells for more than a $1000 per ton. It's incredible, in 2003 you could have bought four tons of that very same steel for $1000. In 2008, AK Steel expects to spend $3 billion more just for the raw materials and energy to make about the same amount of steel as it cost in 2003.
$3 Billion more just for electricity, iron ore, natural gas, coal, coke, and alloys.
Unlike their competitors, AK Steel owns none of the raw materials, meaning that AK Steel is subject to the volatile world market. So when the price of iron ore goes up 90%. And the price of coke goes up 200%, as they both just did, Ak Steels cost will rise substantially over those of our two closest competitors, US Steel and Arcelor Mittal.
"We can't buy an Iron Ore and move it to Middletown. But we can become much more competitive with a new, long term coke supply and electricity supply in Middletown."
Other Recent AK News:
Middletown City Manager met with AK Steel President James ...
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