More players, capacity to hurt pipe, tube mart
Apr 12, 2013 | 05:23 PM
| Catherine Ngai
NEW YORK The pipe and tube sector is set to face a major oversupply problem, with new players entering the market just as existing companies plan new expansions, and industry observers fear that not everyone will make it through.
"The problem isnt how many are coming; the problem is that not all of them will survive. Today we dont need one more joint of pipe, yet theyre all coming," Dolty Cheramie, president of Houston-based line pipe distributor Pipe Exchange Inc., said. "Across the nation, our inventories are very reduced and were scared to buy anything. Whatever you buy today is a bad deal tomorrow."
Dolty was among the participants speaking at the recent Critical Commodities Conference hosted by the American Institute for International Steel and the Port of New Orleans. Many said that margins in the pipe and tube sector are being hurt due to additional capacity being brought online. ....
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.