If you didn’t get a chance to read our January Newsletter, then here are some direct quotes from Adam Osborn, President of Ace Steel Supply.
“A very strong jobs numbers was reported at the beginning of January. Much higher than anyone had expected.
This is good for the economy. In addition, wages are increasing. Low unemployment, consistently good job numbers and higher wages all point to strong consumer spending.”
Domestic Mill Prices
“I’ve read several comments recently that domestic mills believe service centers’ (distributor) inventory levels are very low. They believe distributors will be coming back to them very soon and they’ll be able to fill their order books.
As soon as that happens, they’ll immediately go into price increase mode. Once they get the price moving higher, they’ll likely incrementally increase it as high as they can.
If you are interested in locking in some prices right now, it’s a very good time to do this.
We’re keeping our ear to the ground so we can react accordingly. Be aware that as soon as the domestic mills start raising prices, all foreign mills will follow suit.
Once that cycle starts the distributors will have no choice but to raise prices also.”
Rising Oil Prices
“Oil prices have come back up off their lows. We all saw gas prices at the pumps lower, but that’s reversed course higher now that oil has come back up.
Higher oil in our market is always good. If we pay a little more at the pump, that’s ok!
A strong oil market will give Houston a strong local economy and that’s good for everyone in this area.”
Stable Supply Of Steel
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Call us if your company requires a secure supply of stainless sheet, aluminum sheet, cold-rolled sheet or galvanized sheet metal.
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