Transaction prices struggled off the mat in January as the manufacturing economy labored to end its recession. In fact, PURCHASING'S Industrial Supplies Price Index (ISPI) rose to 102.5 (1992=100) compared with a revised 102.0 for December. Of the seven groups of materials tracked monthly, the indexes for metals, wood products and chemicals rose slightly in January while energy, plastics, wood pulp and paper products fell marginally. Buyer surveys indicate no dramatic uptick in demand although numerous producers attempted price hikes. For example, steel mills announced higher salestags for various sheet mill products in January. Some transaction prices did edge slightly higher, but not to the levels sought by producers.

There are other pricing issues:

• Polyethylene producers have a 3¢/lb-price hike on the books for this quarter, but spot-market prices continue to drift downward. Producers withdrew a 5¢/lb-price hike in fourth quarter 2001.
• U.S. propane inventories reflected seasonal declines in January, but demand kept sliding as well. Upshot: market tags fell to 70¢/gal from 75¢ in December.