Demand for Steel Raises Prices

By Ap | St Louis Post-Dispatch (MO), August 6, 1994 | Go to article overview

Demand for Steel Raises Prices


Ap, St Louis Post-Dispatch (MO)


Steel, one of the basics of industrial America, is getting costlier and eventually could add to the price consumers pay for everything from minivans to microwaves.

Brisk orders for steel used in cars, appliances, housing and other products have made conditions in the industry so good that steelmakers are struggling to meet demand.

Prices have risen as much as 8 percent so far this year, far outpacing the overall rate of inflation. Analysts believe steelmakers may boost prices to automakers as much as 10 percent, at least four times the increase in recent contracts.

That doesn't necessarily mean consumers should expect big increases in the cost of goods made with steel. But the rise in steel prices comes against a backdrop of price increases in other basic commodities, a trend that some economists call a harbinger of higher prices overall.

Bethlehem Steel Corp. said the $30 a ton increase it plans for Jan. 1 would add about $26 to the cost of an $18,000 car and about $1. …

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