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Computer Modelling of the Supply and Demand for Stainless Steel in the United States 1975-2000.
Clark-JP; Katrak-FE; King-TB
NTIS: PB/299-607 :294 pages
A longrun dynamic simulation model has been constructed to facilitate policy analyses related to the stainless steel market. Between 1965-76, the apparent consumption of total wrought stainless steel increased annually at 1.9 percent whereas that of stainless steel sheet increased 6.8 percent. Although the future growth of stainless steel consumption in its existing markets will be only about 2 percent per year, the overall growth of its consumption will be about 4 to 5 percent per year because of new applications. The (real) price elasticity of demand for stainless steel mill products is between -1.0 and -1.7. The high price elasticity of supply makes it difficult for the domestic industry to reduce prices at high capacity utilization levels. However, the cost savings, small as they are, at higher production levels critically affect the profitability of the industry. An unanticipated 200-percent increase in the price of metallurgical-grade chromite ore indicates a 6-percent increase in the price of wrought stainless steel.
CP; Final Contract Report;
NTIS Accession No.
Mass. Institute of Technology
Page last reviewed: September 2, 2020
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