AK Steel is adding a titanium component to its stainless steel raw material surcharge due to a nearly five-fold rise in cost since the beginning of 2004.

The titanium surcharge, which takes effect with shipments on and after May 1, 2005, will be applied to all grades of stainless steel sheet, strip and plate products that contain a titanium addition.

AK Steel said its surcharge will based on the percentage of titanium in each stainless steel grade, using a base rate of $3.50 per pound in conjunction with the average monthly price as published by Ryan's Notes for US 68–72% grade titanium. The monthly average titanium price for March 2005, which will be used to calculate the surcharge for May shipments, is $14.889 per pound. The titanium component will be included in AK Steel's May 2005 stainless steel surcharges, which are to be published later this month.

Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.