AK Steel Holding Corporation (NYSE:AKS) has increased the spot market base price of its carbon flat-rolled steel products by $30 a ton. The company said the new orders will be immediately subjected to the revised prices.

This is the latest in a series of product price hikes by AK Steel. Price increases by steel companies are usually seen as a sign of favorable market conditions. For AK Steel and its U.S. steelmaker peers, they seem to be reaping the benefits of tightening trade conditions for their foreign rivals.

U.S. trade regulators slapped Chinese steel imports with hefty tariffs after it emerged that China was dumping cheap steel on the country, thus roiling the market for domestic steelmakers and threatening employment in the steel sector, but benefiting American steel consumers. In order to prevent American steel consumers from benefiting, the tariffs were enacted.

But AK Steel and its domestic peers are not resting in trying to push for fair trade practices. U.S. steel companies have recently claimed that China was selling its cheap steel in the country by shipping it through Vietnam to skirt the antidumping tariffs in order to benefit U.S. steel consumers in defiance of the U.S. government. The U.S. Commerce Department said this week that it has launched investigations into allegations China was shipping its steel products through Vietnam.

Earnings beyond expectations

For 3Q16, AK Steel posted EPS of $0.21, significantly up from $0.04 a year ago and above a consensus estimate of $0.13. However, revenue of $1.45 billion barely met the consensus estimate but fell from $1.71 billion a year earlier. The company explained that it made fewer shipments in the quarter compared to a year ago.

For instance, shipments declined 24% to 1.425 million tons in 3Q16. However, higher average selling prices offset the soft volume shipments. AK Steel sold its products at the average price of $1,016 a ton in 3Q16, up from $912 a ton a year earlier.

With the latest price hike, AK Steel is hoping to boost its average selling price and if volume shipment improves, it should post higher earnings in the coming quarters.

Analyst review

Analysts at Bank of America Corp (NYSE:BAC) recently upgraded their rating on AK Steel stock to BUY from UNDERPERFORM. The analysts also sweetened their 12-month price target on the stock to $8 from $4.