Number: RL34695
Title: Minerals Price Increases and Volatility: Causes and Consequences
Authors: Stephen Cooney, Coordinator, Resources, Science, and Industry Division 
Abstract: Congress has become concerned with the rise in mineral prices and the effects on the U.S. industrial economy. Of course, the rise in price of petroleum and other mineral fuels has been a subject of great public concern and front page news. But many manufacturers, and others in industries such as construction, have been at least equally concerned about recent surges in the price rises, especially in 2007-08, in steel and other metals. In the short run, Congress will consider the effect of higher material costs in public contracts, particularly in infrastructure projects financed by federal resources. More indirectly, the federal budget and domestic economic growth are being affected by layoffs and employment contraction as industries are hit by the double effects of slower economic growth and higher metal materials input costs.
Pages: 45
Date: October 3, 2008