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Buyers "shutting it down" until 2002

By Staff -- Purchasing, 10/4/2001

The metals markets still lack a clear sense of upward direction with 72% of metals buyers surveyed in September projecting flat-to-down production by their companies through next March. So, the buyers remained cautious in their present and near-term future strategies for supply chain management. In fact, 66% of metals buyers plan to maintain non-expansionary buying through year's end. And 94% say their inventory trend through December will be to reduce or maintain stocks. That's despite the fact the largest margin ever (94%) report that metals inventories are the same or lower in September than the month before. Similarly, 92% of these buyers have the same or lower levels of fabricated metals in stock. Interestingly, 86% of buyers polled in September continued to look offshore for some of their future metals needs. And that's despite the fact that availability, pricing and quality are not concerns when sourcing from either domestic mills or service centers.


 

Problem Spots

Shortages
  • Ferrous. Coated sheet (from distributors), bar stock in some angle and flat shapes.
  • Nonferrous & precious. Parts made from beryllium copper.
Pricing
  • Wire rod. Mini-mills want to increase prices on all wire rod products by $10-15/ton effective with shipments Oct. 1.
  • Tool steel. Not a problem just now; prices are continuing to slip as National Tooling and Machining Association says purchasing from its members the lowest levels in 20 years.
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