Second Steel Firm Plans Price Rises

Press, Volume CII, Issue 30107, 16 April 1963, Page 11

Second Steel Firm Plans Price Rises

(A Z. Press Association—Copyright) WASHINGTON. April 15. Major American steel companies remained silent today on their price plans after an announcement that a second producer had decided to increase prices on some of its products, the Associated Press reported.

Presiden Kennedy became involved in a political furore last year when he took strong action after major steel companies had announced general price rises Yesterday. the Lukens Steel Company, the nation's twentie’h ranking steel producer. announced increases of five to seven dollars a ton on some of its products Last Tuesday the Wheeling Steel Company the eleventh largest producer announced increases averaging six dollars a ton on a wide range of products.

Following the Wheeling « announcement, other firms watched and waited for President Kennedy's reaction Two days later he indicated that selective price increases would be all rLht. But last night at Palm Beach, ’'lorida the White House press secretary. Mr Pierre Salinger emphasised the President's interest in maintaining “over-all price stability ” This was taken tn -nean that Mr Kennedy was not convinced tha’ Lu ken s'? actions met the te«- of once selectivity. AP said

Lukens, however, said its increase* on carbon steel and alloy steel plates applied to le«s than 50 per cent of sales. Wheeling alsio had said its price increases would affect less than half its output. ft was believed that Presidential sides were making their ow.i study to determine what percentage of Lukens output would Oe affected Unt'ed P-ess Internationa' »»•<• •-me -ibserverr "one'd ered the two steel price rises a test of the martet as well as a challenge f o the Administration's policy of wage and price moderation Other steel producers ap-

peared to be waiting to see what ‘big steel” companies decided to do It was felt that if the industry did not follow the moves made hy Wheeling and Lukens, they might have to back down The nation’s largest steel producer. U S Steel. said yesterday it was standing >n a statement last week that it would have no comment on the price increases until after Easter Although Luk ens us third ir producing steel plate, it is nnt ranked among the "big steel” companies