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Nucor Follows Current Industry Trend with Raw Material Surcharge
Charlotte, NC— Nucor Corporation states that beginning with shipments on January 1, 2004, all Nucor Steel divisions are instituting a $20/ton raw materials surcharge on all steel mill products. The surcharge has become necessary due to rapid and unprecedented raw materials price increases. The rapid escalation of raw materials cost has outpaced our ability to appropriately react through normal price changes. The surcharge will be adjusted on the third Monday of each month, based on raw material cost changes from the previous month, and applied to shipments on the first day of the following month.
The unprecedented increase in the cost of raw materials used by the world’s steel producers (scrap, coke, iron ore, freight, alloys and energy) can no longer be absorbed through normal price increases. “Nucor has and will continue to work to lower our operating costs to make steel products through the highly productive efforts of our people, the development and use of new technologies and the relentless pursuit of excellence. We regret the need to apply this raw materials surcharge and we will remove it as soon as conditions allow.” said Dan DiMicco, Nucor’s Vice Chairman, President and Chief Executive Officer.