Steel mills see better orders
By Peter F. Marcus -- Purchasing, 9/2/1999
New orders at major U.S. steel mills have been quite strong of late. Second-quarter orders totaled 114 million tons (seasonally adjusted annual rate), the highest since third quarter 1995. Recent domestic order strength reflects solid steel requirements from both end users and distributors plus a weakening in 1999 imports. Surveys of members by both the Steel Service Center Institute and the napm Steel Users' Group show that foreign mills were less active in soliciting U.S. business in the second quarter.Major-tonnage steelmakers have been receiving healthy new order bookings despite seasonal forces that should have pulled them down significantly. During the initial months of 1999, the World Steel Dynamics index of activity for 15 steel-consuming industries ran 6.3% higher than during the same period of 1998. Steel-using segments showing activity growth through April 1999 include business equipment, household appliances, automobiles, trucks, non-electrical machinery, metal fabrications, non-residential construction products, and metal packaging. Lagging sectorsþdown marginally from one year earlierþinclude railroad rails and miscellaneous products, ships and boats, electrical equipment, residential housing materials, defense and space equipment, and farm equipment. Only activity in oil and gas drilling collapsed.
Peter F. Marcus, managing partner of World Steel Dynamics, is a metals consultant and founder of various metals data services. He is at 456 Sylvan Ave., Englewood Cliffs, N.J. 07632
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