Service center execs nervous about steel supply risks
Jan 25, 2010 | 11:05 AM
| Corinna Petry
Although demand for steel products is still largely weak compared with levels seen prior to the Great Recession, members of the Association of Steel Distributors (ASD) said they must consider what might happen with both supply and pricing if demand grows beyond current expectations.
"I believe the risk is substantial right now" for there to be shortages of material in the supply pipeline, "possibly greater than during the past few demand cycles," Joseph W. Darragh, vice president of sales at Charter Steel Trading Co. Inc., Chicago, told AMM in a roundtable discussion.
"The (inventory) pipeline is nearly dry. If there was a significant increase in demand, there would be a great risk of steel shortages and supply disruption. That risk is mitigated now by the fact that demand is strengthening in only a couple of core markets, including automotive. If we saw strengthening in any significant market (other than automotive)—construction, consumer durables—it would put an extreme amount of pressure on the steel supply chain," he said.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.