 Register to receive our newsletter |
Pipe News You Can Use
 
Post Recession Bounce Good News! The Steel Industry may be heading into a post recession bounce. We just surveyed most of our suppliers and they were all very "Bullish" in their outlook for the year. One boldly predicted that it wouldn’t be long until we saw $1,200 Per Net Ton for Black Plain End Pipe. That is not far from the $1,400 to $1,600 peak prices we were paying in the second half of 2008. Most economists say the U.S. Economy bottomed in mid 2009. There are many optimistic recovery signs. But, in November 2009 many steel experts still believed that we would remain in the bottom of the curve for some time. However, now there are some very positive signs that indicate a much stronger more rapid recovery. Steel scrap prices are up around 12 percent in the U.S. with demand picking up compared to a year ago. Flat rolled steel and steel pipe prices are up 15 to 20 percent. China is encouraging its steel producers to merge and form larger companies. This action follows U.S. and Russian Mills lead to reduce capacity, keep prices up and still maintain market share. Overall Asia and China in particular, are at the forefront of the economic recovery taking place around the Globe. One of the major reasons for China’s resiliency during the recession was their $586 billion stimulus package, which emphasized the building of infrastructure and steel consumption. Construction in China and Asia is booming. According to the U.S. Energy Information Administration (EIA), sustained economic growth in China and other Asian countries is contributing to the beginnings of a rebound in world oil consumption. EIA projects world oil consumption to grow in 2010 by 1.26 million barrels per day, including reversal of a downward trend in U.S. oil consumption that began in 2005. Renewed drilling in the Gulf and U.S. shale fields resulted in increased purchases of Oil Country Tubular Goods. Some Korean OCTG pipe mills are already booked through June/July delivery 2010. Prices at the gas pumps are going up with $3.00 per gallon predicted by midyear. Out of all the steel markets in the Americas, and perhaps even in the world, Brazil’s appears to be the hottest. Brazil’s steel prices are rising along with demand. Brazil is leading the recovery of the global steel industry. The World Steel Association in Brussels, Belgium forecasted that apparent steel use will grow 9.2 percent in 2010, which is recovery to the level of 2008. Because of the weak U.S. Dollar, increasing demand, shortages and inflationary price increases, we foresee significant price increases during 2010. This will mandate that we all manage our inventory more carefully. Robert A. Baker Robert A. Baker, President Baker is Recipient of SBA Award ------------------------------------------------------------------------------
STEEL PIPE AND FENCE SUPPLY DISTRIBUTOR Baker was also honored by Louisiana Governor Bobby Jindal on May 21 at the Governor's Mansion in He was also recognized during the National Small Business Week celebration held May 17-19 at the Mandarin Oriental Hotel in Baker Sales Inc. has been operating in southeast Louisiana for more than 30 years and is the area’s leading distributor of steel pipe and fencing materials. Additionally, Baker has been a civic-minded leader in the Slidell community, leading a volunteer team that planted more than 300 trees throughout the city and ultimately established Slidell as a Tree City USA. He also is an active member of the Rotary Club of Slidell Northshore, a charter board member of the Keep Slidell Beautiful affiliate of Keep America Beautiful, and a sustaining patron of numerous cultural and civic events.
“Soon after I had started my business I realized that the success of Baker Sales Inc. was in the hands of the Lord, so I made Him ‘Chairman of the Board.’ He has been our senior guiding partner ever since,” Baker said.
|
