Purchasing shows no vitality

By Staff -- Purchasing, 2/8/2001

Metal market conditions are less than cheery, as less than 74% of all metal buyers responding to Purchasing's latest survey plan to maintain or reduce buying in the first quarter. A similar percentage plan to maintain or reduce inventories through March. And that's because 72% of metal buyers suggest that business conditions will be flat to down this quarter. January's survey was the seventh consecutive month where less than half of buyers planned to boost future orders. In fact, the 26% who do plan to boost metal bookings through midyear represents the lowest percentage of metals-buying bullishness since October of 1999. Buyers also are continuing to reduce in-plant stocks, as 82% report the same or less tonnage on hand than in December. That's despite the fact that 50% of the buyers see in-house stocks as lower than they should be for current in-plant demand. That means that hand-to-mouth buying will continue in the weeks ahead. The survey shows that 87% of all metals buyers surveyed paid the same or less than they had in December, which compares with 83% in the previous month's survey. Ninety-two percent of the buyers paid the same or less for steel in January, while 81% paid the same or less for aluminum, 74% paid less or the same for copper and brass mill products and 96% paid less or the same for other nonferrous metals. Buyers also don't believe there will be much trouble obtaining metal in coming weeks since 88% say mills and 93% say service centers have loose to normal deliveries.