December 02, 2008

ATI Allegheny Ludlum changes to its surcharge policy

In response to the continuing escalation of raw material prices, ATI Allegheny Ludlum has recently announced the following changes to its surcharge policy for certain stainless and HTA nickel alloy sheet, strip, precision rolled strip and specialty plate products

1. Addition of niobium surcharge
A niobium surcharge will apply to all grades with an ASTM minimum niobium requirement.

2. Addition of Copper Surcharge
A copper surcharge will apply to all grades with an ASTM minimum copper requirement. The trigger level for the copper surcharge is a copper price of USD 1.60 per pound. The surcharge is based on the London Metal Exchange monthly average copper price.

3. Modification of HTA nickel alloy and stainless surcharge for chromium
The chromium surcharge will be modified for certain HTA nickel alloy and certain stainless grades to more accurately reflect consumption of premium chromium units required in manufacturing. Chromium required for these grades is purchased in a variety of forms. The new chromium surcharge will reflect a composite chromium charge mix required for each of these grades.

The new surcharges for stainless alloys are effective with May 4th 2008 shipments and for HTA nickel alloys with immediate effect.

The release added that all other components of the surcharges remain unchanged.