The value of small cap stock for AK Steel Holding Corporation (NYSE:AKS) was higher on Monday after the company announced it planned to increase its steel prices for a second time.
According to the Cincinnati Business Courier, AK Steel announced on August 6 that it would increase spot market prices on flat-rolled carbon steel by $30 per ton. This came only a month after the company raised its prices by $40 per ton on July 6, and then again by the same amount of July 27.
The current price hike is effective immediately with all new orders, the company said. AK Steel, which produces stainless and electrical steels, has a large customer base in the automotive industry, and several infrastructure and manufacturing customers. It also produces steel for certain companies in the construction and electrical generation industries. Its sales are typically made through contracts, rather than spot market prices, which has led the company's stock to fall in recent months, until the price increase.
As of 3:30 p.m. on August 6, 2012, AK Steel's shares were up 8.8 percent to $5.34 each.