Steel Products
ISM Steel Buyers Survey
Written by Sandy Williams
January 9, 2013
Written by: Sandy Williams
In the December ISM Steel Buyers Survey, 54.5 percent of respondents reported having inventory on hand to cover shipping levels for 1-2 month, 18.2 percent said 0-1 months and 27.3 percent for 2-3 months. Compared to levels 12 months ago, 36.4 percent said tons on hand were about the same as last year and 27.3 percent said tons at hand were up 10 percent or more. Receipts are expected by 63.6 percent to remain the same for the next three months and 27.3 percent expect a decrease. Inventory is keeping pace with demand for 63.6 percent of respondents and too high for 36.4 percent. More than half, 54.5 percent, of those surveyed expect to decrease inventory over the next six months while 36.4 percent expect to maintain current inventory levels.
Shipping levels were reported down from last quarter and from one year ago by 63.6 percent of respondents. Prices remain competitive for 54.5 percent of buyers and weak or very weak for 36 percent of respondents.
Most do not expect company expansion through building or buying for 2013. When asked about new hires, respondents were evenly split at 50 percent. Short time and layoff was not an issue for 94 percent of those surveyed.
The trend in new orders is expected by 48.7 percent of respondents to be the same over the next three months while the rest of those surveyed are evenly split on whether orders will go up or down.
The trend of general economic activity is expected to improve over the next six months by 36.4 percent while another 36.4 percent expect it to stay the same. Most expect sales and production to stay the same in the industry for the next six months.
Pricing by foreign mill was seen to be similar to domestic levels and activity by foreign mills seeking U.S. business appears normal.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
CRU: US stainless prices to rise on expanded S232 tariffs
Stainless prices in the US market will rise, following price increases by major US producers. Our base case scenario incorporates higher US prices in the near term, despite the initial negative reaction by the market. US stainless prices will go up in 2025 H2 and will stay elevated in 2026 as tariffs on stainless […]
Galvanized steel demand unsteady amid lingering buyer fatigue: HARDI
Uneven demand for galvanized steel in June reflects a market that remains mired in uncertainty, according to industry sources.
OCTG industry salutes Customs for catching trade crooks
The US OCTG Manufacturers Association is commending US Customs for intercepting another Thai company's attempt to illegally transship Chinese oil pipe to the US.