Anecdotal data from the Federal Reserve's regional districts shows that manufacturing activity in the U.S. has slowed in the past weeks. That matches PURCHASING magazine's latest Business Survey, which shows the metalworking Business Activity Index stuck at a barely positive 53 for a second month in September (50 is considered neutral). The 90-day Forward Demand Index for metals-consuming companies was 57.4 in September; it has been under 60 for three months now. Also, there still is no sign of a metals inventory buildup in the works; in fact, at 32.3 the index is the weakest it has been since hitting 31.8 late last year.

Overall, the views of the buyers support producers' and distributors' concerns that prolonged economic weakness will depress already soft manufacturing demand for nonferrous metals. Key nonferrous industries-aviation, telecommunications, industrial machinery and appliances-have warned that a broad economic recovery is not materializing. Buyers still complain about tighter-than-usual supplies of steel sheet mill products-primarily the hot-rolled, cold-rolled and galvanized sheet grades covered by President Bush's Section 201 tariffs. However, the overall index for all steel and nonferrous metals availability from the mills remains at 60.6.