Steel Products
Metal Fabricators Expecting Stability and Moderate Growth in 2nd Half
Written by Sandy Williams
August 16, 2013
Metal fabricators are reporting stable business conditions according to the Fabricators & Manufacturers Association’s inaugural survey of small to mid-sized metal fabricating companies.
No significant growth or shrinkage was noted in new order activity by most respondents. Commodities and logistic prices were also seen as fairly stable. New trucking rules have some respondents expecting higher freight costs in the next quarter.
Operating capacity for small fabricators has been at 63.74 percent, well below the normal capacity of 85 percent, leaving ample room for growth.
Capital expenditures were on the horizon for manufacturers and fabricators six months ago but little expenditure in machinery and technology actually occurred in 2013. Most companies (58 percent) are delaying capital equipment purchases and 34 percent are putting plans on hold indefinitely due to lingering concerns about economic recovery.
The future outlook is positive with moderate growth or stability expected for the balance of 2013.
The FMA survey is distributed to top ranking industry executives of more than 17,000 companies providing parts and assemblies to the automotive, aerospace, medical equipment and heavy equipment industries. For the first survey, 280 metal fabricating companies responded. The majority of companies responding have less than 19 employees and the rest less than 50.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.
Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
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.