If there's one market that's doing quite well lately, it is tool and die steels. While the Specialty Steel Industry of North America hesitates to calculate tool steel market activity, PURCHASING estimates that use last year was in excess of 73,000 tons. While that pales against the 114,000 tons in 2000, it's quite a pickup from the 52,000 tons in 2002 when the market collapsed.

North American tool-steel producers remain bullish on overall industrial activity even though automotive production has curtailed. But there's a lot more to heavy metalworking activity than auto parts. Heavy machinery and industrial and commercial equipment, for example, are booming. Universal Stainless & Alloy Products notes in its recent first quarter financial statements that tool-steel sales for the balance of this year "are expected to remain ahead of last year as continued strength in the industrial manufacturing sector is expected to partially offset lower automotive production."

And, now, specialty steel producer Allegheny Ludlum is hiking its transaction prices of tool-steel-plate products by 5%, the second increase this year on tool steel. Terrence L. Hartford, Allegheny Ludlum's senior vice president for commercial activities, says the base price of D-2 plate will increase to $1.61/lb from $1.53; A-2 will jump to $1.05 from $1 and A-6 will be hiked to $1.25 from $1.19.

stundza@reedbusiness.com