Sudden $250/T charge upsets U.S. Steel buyers

U.S. Steel Corp., Pittsburgh, has implemented what it is calling a "market adjustment" charge of $250 per ton on long-term contracts, a move that has left some buyers wondering how they are going to collect the charge from their customers.

Some contract buyers were informed of the charge May 2 with a letter telling them it would go into effect May 5.

One steel processor said he's not shocked by the move, given what is happening in the market in terms of rising raw material costs. "But there are a lot of us who are kind of caught in the middle," he said, noting that he has no choice but...

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