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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (10029)	11/19/1997 3:50:00 PM
From: Mark Adams	Read Replies (1) \| Respond to of 94695

U.S. steel officials perplexed over falling prices A sign of imported deflation? biz.yahoo.com "Recent price cuts by U.S. steelmakers have some industry officials wondering why prices are dropping in a market where demand remains strong and the industry is on track for a record shipment year. ''I'm dumbfounded,'' Paul Wilhelm, president of U.S. Steel (NYSE:X - news), told Reuters. ''I'm perplexed as to why anyone has to cut prices in this market. It doesn't make any sense. ''Are we concerned about it? Yes. Do we intend to do anything about it? No.'' ... Some steel buyers agreed with Wilhelm. ''There doesn't seem to be any rationale in the market (for falling prices),'' said a purchasing manager at a Southeast service center. ''Demand is still strong. I don't understand it.'' He called Nucor's most recent price cuts ''a lagging maneuver.'' ''Pretty much everybody else was already discounting,'' he said. Moreover, he said the downward trend in pricing might cause some buyers to delay placing new orders, rather than prompt them to build up their inventories. ''It makes you wonder if prices are going to fall further...then maybe what you bought now, you didn't get at such a bargain,'' he said. That delay of purchasing is a prime factor of deflation.