The bankruptcy reorganization of US Airways has caused Northwest, American and other major airlines to call off a business-class and full-coach airfare war that had slashed ticket prices to their lowest levels in a decade. The fares—with discounts of up to 41% on many routes—were going to be available for travel through next June.

Chris Olin at Midwest Research has joined other mavens pushing out expectations for an aluminum market recovery to early 2003 because a supply overhang threatens to keep prices down for the foreseeable future. Supply-demand fundamentals showed mild improvements in August, but at a decelerated pace from earlier in the year.

Sloppy accounting for purchased materials has struck the industrial distribution industry. MSC Industrial Direct Co. of Melville, N.Y., says internal reviews found $8.3 million in overstated net income during the past four years. The incorrect accounting related to purchases for inventory, so MSC has taken "appropriate actions" to fix internal controls.

Suppliers of major chemicals face an uncertain demand outlook, suggests analyst Don Carson at Merrill Lynch. "Recent economic data does not bode well for sales volume growth in the second half," he says. Industry data shows purchases of major chemicals were at double-digit growth rates briefly in early 2002 but the pace has slowed dramatically.

The price of natural rubber should not exceed $1/kilogram in the current economy, say rubber industry executives. They fear buyers will turn to synthetic alternatives if prices rise to $1.20-1.25/kg this autumn, as predicted by some market analysts. Erwin Muller, rubber industry director in Bangkok, sees the "most appropriate price range " as 75-95¢/kg.

Snug supply resulting from maintenance outages during the next few months of the year will keep methanol prices elevated, despite lower feedstock costs and little indication of improved demand, says analyst Dave McCaskill at CMAI in Houston. Spot-market prices have held at 63-64¢/gal for two months now because merchant supplies remain limited.

Look for sharp increases in polypropylene tags. Reason: rising demand and reduced supply. Forecasters at DRI-WEFA see an average 12.% price increase in 2002 with more hikes coming in 2003. Several PP plants remain mothballed.