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Cautiously, Steelmakers Raise Prices, Reopen Mills

Larry Edelson (January 7th, 2009) Writes:
pJan 6, 2009 (WALL STREET JOURNAL) -- In an early sign that some steel prices may have bottomed out, steelmakers in the U.S., China and some other countries are attempting limited price increases and reopening a handful of mills that were closed because of weak demand a few months ago./ppnbsp;/ppIt isn't clear whether the price increases will stick, however. Steel sellers often announce price increases or special surcharges, only to relent in the face of customer opposition or if rivals don't follow suit. Nor is it clear whether the price increases reflect more demand or lower inventories.br /nbsp;/ppTroubled auto makers, contractors, appliance and equipment makers have cut back on their steel purchases. The majority of mills closed over the last few months remain shuttered and many around the world are operating below 50% of their capacity./ppnbsp;/ppBut steelmakers signaled cautious optimism that there is enough demand to support price increases in ...

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