Council to Study Steel Price Increase

by Council on Wage and Price Stability on November 24, 1976
by Council on Wage and Price Stability

 

The Council on Wage and Price Stability reported that the White House had ordered it to begin an immediate study of today’s announcement by the National Steel Corporation that it intends to raise the price of its sheet steel products by 6% effective December 1, 1976.

 

Noting that the price of sheet steel effects the prices consumers ultimately pay for such major items as automobiles and home appliances, Acting Director of the Council, William Lilley III, stated that ” … we are surprised by National’s decision since it does not appear that the demand for steel products is strong enough to sustain a price increase of this size. The current situation is similar to that which existed only last August when market conditions forced the steel producers to rescind an even smaller price increase planned at that time. We are asking National to provide us with production, cost, profit and expected sales data, and are prepared to request similar information from any other steel company which might announce an equivalent price increase in the near future.” The Council will submit the results of its evaluation to the President as soon as possible.

 

 

 

 

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