Carpenter Technology Corp.’s subsidiary Carpenter Powder Products Inc. (CPP) announced that it will add an energy component to its surcharge calculation for all tool and high-speed steel products.

The company says the energy surcharge, which becomes effective immediately, is necessary due to the dramatic increase in natural gas prices.

Each month, the company will calculate its energy surcharge component by subtracting the base rate of $6.00 per thousand cubic feet (MCF) of natural gas from the monthly closing NYMEX settlement price, as reported in Platts Gas Daily. The calculation will also factor in the amount of natural gas used to produce various product forms by applying a multiplying factor.

Based in Bridgeville, Pa., Carpenter Powder Products Inc. is a leading global manufacturer of gas atomized specialty metal powders and consolidated powder metallurgy products. Carpenter, based in Wyomissing, Pa., is a leading manufacturer and distributor of specialty alloys and engineered products.