Steel prices rise, but so do car orders

Railway Age, April, 2004

Despite steep increases in the price of steel scrap and steel products, including castings, forecasts for freight car production continue to be optimistic. In its latest quarterly report on the freight car market, Economic Planning Associates predicts that 42,600 cars will be built this year, compared to 32,180 in 2003.

EPA sees production rising to 46,350 cars in 2005, 50,850 in 2006, 55,550 in 2007, 57,700 in 2008, and 59,850 in 2009. Current levels of production would be higher, says EPA, without "shortages of domestic castings [that] will constrain assemblies both this year and into the first half of next year."