The metalworking economy is emerging from recession at a faster clip than analysts had expected and metals buying plans have begun to accelerate.

Economic activity among metals-consuming companies grew for a third consecutive month in April, according to Business Survey data from PURCHASING. Forty-five percent of metals-using companies report rising incoming orders, while another 31% say their order levels were at least stable in April. This reflects an estimated 1.5% average first quarter growth rate in orders for durable goods (items meant to last three years or longer).

And, while the rate of metals inventory liquidation did not change, metals buying plans rose briskly in April, apparently to meet expanding production schedules. However, there is still no sign of a recovery in purchases of industrial machinery, which is a huge end market for metals.

Steel prices rose steeply in April. Increases in market prices for aluminum and copper metals were marginal. Tags fell for specialty metals and superalloys.