Market at a glance
By Tom Stundza -- Purchasing, 10/7/1999
Use: Expanding, and at a decidedly and totally unexpected 10% annual rate through summer. Mill product consumption rose by 6% in 1997, but the growth rate fell to 1.5% in 1998, and forecasters believed wobbly sales improvement would continue this year. However, demand has been robust from transportation, construction, and consumer products, offsetting a slowdown in buying by packaging markets.Supply: Tightening, but not a real problem. Mill leadtimes have expanded to about 3 1/2 weeks, up from 3 weeks this time last year. Imports have risen to about 10% of the market from 9% last year. Still, some buyers in the South and Southeast especially are seeing some tightness in prompt delivery of sheet and plate. Atop that, distributors' stocks are stable at the equivalent of 11% of supply.
Prices: Weak, but rising. North America remains the healthiest region in the global market, but the ingot average of 64¢ this quarter still is below 1998 average (65¢) and below the 86¢ cyclical peak in 1995. Mill product prices are rising but remain 19% off the 1995 peak.
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