More metals buyers (45%) expressed optimism in April about future business conditions than any of the previous months of 2001, but only 35% indicated they would expand new-order bookings in the second quarter. Reason: Seventy-three percent of the buyers polled monthly by PURCHASING Magazine say they plan to maintain or reduce existing inventories of metal products. The survey found that 77% were maintaining or reducing in-plant stocks of metals in April because 62% still believed inventories were in excess of manufacturing requirements. Buyers still are unconcerned about supply: 85% say mill deliveries are normal or loose and only 6% see availability as tight from service centers. In that vein, on-time deliveries in April were the highest in almost three years; the just-in-time percentage of 91.8% was the second highest since 92% in May of 1998.

Still, there were a few mill products in short supply: beryllium copper shapes, special-alloy steel plate, titanium shapes and large and heavy wide-flange steel beams. Buyers also report that importers continue to be aggressive in sales of hot-rolled, cold-rolled, galvanized and cold-rolled stainless steel sheets.