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Buyers scramble for steel

Staff -- Purchasing, 7/18/2002

Steel is still the biggest story in leadtimes. Overall, steel leadtimes tracked by PURCHASING Magazine are averaging 10-11% longer than year ago. Other coated sheet is the tightest segment with 37% of buyers waiting six or more weeks for delivery compared to just 16% one year ago. Hot-dipped galvanized is about the same with 32% now waiting six or more weeks compared to just 16% in July 2001. Dramatic tightening is also noted in stainless sheet and strip where one in three buyers is now waiting six or more weeks for delivery compared to just 8% last year. One in four steel buyers are waiting six or more weeks for hot-rolled sheet and strip, compared to 7% one year ago. Plastic resins are another trouble spot as leadtimes are now averaging 7% longer overall. Most dramatic shift is in polyvinyl chloride where 70% of buyers report leads in excess of six days vs. just 45% last July. For low density polyethylene (PE) the percentage waiting six or more days now stands at 52% compared with 45% in July 2001. Note: Word on the street says high-density PE (extrusion/blow molding grade) is due for a price increase this month. But from a supply standpoint, buyers might be interested to know that the percentage waiting six or more days for delivery has fallen to 30% from 41% a year ago.

Biggest gain
(annual rate-of-change)
1.Polyols44.4%
2.Aluminum wire40.3%
3.Rubber hose38.2%
4.Hot-dipped galvanized32.6%
5.Gold32.2%
6.Cutting tool inserts30.3%
7.Pressure pipe & tube30.1%
8.Acetic acid28.6%
9.Flat belting28.5%
10.Polyvinyl chloride25.7%

Biggest drops
(annual rate-of-change)
1.Platinum-41.0%
2.Palladium-36.6%
3.Electric motors: 1-30 HP-21.7%
4.Pumps-20.0%
5.Investment castings-18.6%
6.Titanium plate-18.5%
7.Gears-14.1%
8.Lift truck batteries-13.7%
9.Titanium sheet-12.4%
10.Folding cartons-12.3%

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