Buyers are more optimistic, see no tight availability
By Staff -- Purchasing, 3/11/1999
After several months of a simple majority of metals buyers forecasting business would be better in six months time, the number leaps up 14 points to 61%--the highest figure since last June. In addition, only 3% expect business to decline. That's the lowest figure since last March. By the same token, 53% expect to be buying more metal in six months time (up 21 points).Why so much optimism? It must be price and availability, both of which can be confidently defined as excellent. No metals buyers responding to the survey reported tight availability from mills or distributors. That's the first time we've seen that happen.
Prices are also doing well for buyers. Steel mill tags fell according to 50% of buyers polled, a decline of 13 points compared with last month, but an impressive amount nonetheless. Aluminum mill prices were down for 53% of buyers, and copper and brass tags fell for 25% of buyers.
Stability is the key in metals inventories. Sixty-five percent report inventories unchanged from last month. Only 9% report raising inventories, despite the low price tags for metal. The plan is also to keep inventories the same over the next three months, according to 56% of metals buyers surveyed.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
