Reply #13: Surge in steel prices creates waves in US auto sector [View All]

[ozymandius]

DETROIT, United States (AFP) - Soaring steel prices have roiled the ranks of US auto suppliers, pushing some to the brink of bankruptcy, and threatening to disrupt the multi-billion dollar US automotive industry.

<cut>
The increase in material costs has been felt most acutely by the smaller suppliers that are most vulnerable to price fluctuations, but it's gradually becoming an issue for automakers who are vulnerable to disruptions in their supply chains.

"This is a very fragile situation that may affect delivery and possibly shut down plants," said Neil de Koker, president of the Original Equipment Suppliers Association that represents auto suppliers.

<cut>
In hearings on Capitol Hill earlier this month, representatives of the Emergency Steel Scrap Coalition warned that the crisis could result in steel shortages and bankruptcies within weeks.

story