Goncalves shrugs off overcapacity worries

Oct 21, 2011 | 04:26 PM | Corinna Petry

Tags  Lourenco Goncalves, Metals USA, hot rolled coil pricing, mill costs, CEO and boardroom responsibility, manufacturing sector, corinna petry

CHICAGO — Metals USA Holding Corp.’s top executive continues to shrug off overcapacity concerns in the domestic flat-rolled steel market, maintaining that steelmakers will have to come up with a different explanation for their shareholders as to why prices look poised to dip below costs.

"Let’s talk about the so-called overcapacity question. I’m going to destroy it right now," Lourenco Goncalves, Metals USA’s chairman, president and chief executive officer, said Friday during the company’s quarterly earnings conference call.

Although a number of domestic mills are ramping up sheet production, demand also is on the rise, he said, keeping the market in relative balance—and making the mills’ capacity alarm bells unwarranted.....

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