AK Steel Announces Surcharges and Price Increases

Middletown, OH, January 15, 2004—AK Steel (NYSE: AKS) said today that it will add a $30 per ton ($1.50/cwt.) surcharge to its electrical steel sheet and strip products, effective with shipments on February 1, 2004.  The company also said it had added a $30 per ton surcharge to its carbon steel products, effective with January 2004 shipments.

The surcharges have been implemented because of extraordinary increases in raw material costs.  Surcharges for both carbon and electrical steel products will be adjusted monthly, based upon changes in raw material costs. 

In addition, AK Steel said it had notified carbon steel customers last week that it was increasing transaction prices for new orders of hot-rolled, cold-rolled and coated steel products.  Hot-rolled steel prices were increased by $50 per ton.  Cold-rolled and coated steel prices were increased by $60 per ton.

AK Steel produces flat-rolled carbon, stainless and electrical steel products for automotive, appliance, construction and manufacturing markets, as well as tubular steel products.  The company has plants and offices in Middletown, Coshocton, Mansfield, Walbridge and Zanesville, Ohio; Ashland, Kentucky; Rockport and Columbus, Indiana; and Butler, Pennsylvania.  In addition, the company produces snow and ice control products and operates an industrial park on the Houston, Texas ship channel.