Steel tube orders slowing; stainless outlook bleakest

By Staff -- Purchasing, 9/7/2000

U.S. shipments of steel tubular products were up in all four major market categories through the first six months, but incoming orders have slowed in the third quarter. Data from the Steel Tube Institute of North America shows shipments of mechanical tube increased by 5% while hollow structural sections rose 10%, standard tube was up 4% and stainless tube was higher by 9%.

The group's latest business conditions survey, however, finds producers concerned about incoming orders. Looking three months out, producers say lower sales to the distribution sector could keep incoming order growth as low as 2% for both the bellwether mechanical grades and the hollow structural sections. Producers forecast a 7% reduction for incoming orders of stainless tubular products because of high service center inventories.

The mills also say the market for standard pipe should remain relatively stable in the summer quarter, with an anticipated 2% growth in orders.