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Metalworking flat, metal buying dull

By Staff -- Purchasing, 12/13/2001

Latest survey of metals buyers isn't exactly expansionary, but it isn't recessionary either. In sum, business is flat, prices are weak, inventory stocks are low and buying is dull. It now appears that the Sept. 11 attacks didn't hamper metalworking as much as they stalled overall manufacturing activity. Sixty-three percent of buyers surveyed say business was the same or better than October. That's the best response in four months. So, while the worst may be over for metalworking, buying activity hasn't perked up yet and is just plodding along. Only 27% of buyers surveyed in November plan to boost near-term metals purchasing. That compares with 29% from the October survey. And, while 41% express an inventory strategy that would maintain or boost existing levels of warehoused metals, that compares with 42% in the month before.

 

Problem Spots

Shortages
  • Nonferrous. Titanium and titanium-based superalloys still have extended leadtimes of 25-30 weeks, even though orders were booked almost a year ago, says a senior buyer in Pennsylvania.
  • Stainless steel. Supply of good quality stainless steel bar "is a big problem," says a purchasing agent in Wisconsin. Stainless steel castings "have unusually long leadtimes," says a purchasing manager in Nebraska.
Pricing

Stainless steel. Stainless steel sheet and plate prices have dropped 16% since January.

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