Council on Wage and Price Stability Requests Delay in Aluminum Price Increases

by Council on Wage and Price Stability on July 3, 1975
by Council on Wage and Price Stability and Albert Rees

The Council on Wage and Price Stability today requested the major aluminum producers who have announced price increases, the first of which are effective July 7, to delay these increases for 30 days. During that time the Council will hold a hearing on the aluminum price increases in order to put all the relevant factors on the record. Any further recommendations or statements will be made after the hearings, which have been tentatively scheduled for July 22.

In making the announcement on behalf of the Council, Director Albert Rees said, “The Council staff has been studying aluminum prices for the past six months. As a result of this study, we are aware that there have been cost increases in the industry. However, the industry has been very successful in maintaining its price level, while operating at about 75 percent of primary aluminum capacity as a result of substantial declines in demand. We are requesting the 30 -day delay so that the questions raised by the increase can be fully answered and second quarter data can be analyzed before any final action is taken. Our concern, which in this instance is directed toward aluminum prices, has a broader scope. This is the first general price increase this year in a highly concentrated industry. If such industries make decisions to increase prices at the first stirrings of recovery, I am concerned that such actions could blunt the recovery that is now in progress. In the early stages of recovery, improvement of profits should come from increased shipments rather than in increased prices.”

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