SBQ to weather US capacity boost: Plummer

May 08, 2012 | 03:20 PM | Corinna Petry

Tags  Christopher Plummer, SBQ, Metal Strategies, engineered bar, Automotive Metals Conference, Corinna Petry

CHICAGO — Domestic producers of engineered bar products are not as vulnerable as they were in the past to a serious supply-demand imbalance due to a lowered cost structure, a steel industry analyst says.

Although U.S. engineered bar capacity is on track to increase some 15 percent by 2015, robust physical demand is expected to help keep the market largely in balance, Christopher Plummer, managing director of West Chester, Pa.-based Metal Strategies Inc., told attendees at AMM’s 5th Automotive Metals Conference in Dearborn, Mich., this past week.

Demand for engineered bar, also known as special bar quality (SBQ), is coming primarily from the North American light vehicle and heavy truck sectors.....

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