Pipe News You Can Use

“Steel Pipe and Fence News You Can Use”

More Optimistic Predictions for 2012. 

While many are still clinging to doom and gloom forecasts, there are now more positive indicators that point to not only an economic turnaround, but record sales and profits for our industry in 2012.  

I’ll admit I’m an eternal optimist but here is some of my reasoning.  This is huge.  “London: Oil giant BP will likely agree to pay the U.S. Department of Justice $20-$25 billion next month to settle all civil and criminal charges around the Deepwater Horizon rig blast and Gulf of Mexico oil spill, a leading industry analyst predicted on Thursday.  Martijn Rats, head of European oil research at Morgan Stanley said in a research note that he saw a 70-80 per cent chance that the two sides would agree a deal sometime between BP’s full year results on Feb. 7 and the scheduled start of legal hearings in New Orleans on Feb. 27.”  Reuters Jan. 19, 2012, 01.08PM IST.  We have all experienced the “Economic Bounce” after a Hurricane or other natural disaster and observed how the economy climbed because of all the Insurance money that suddenly was put into circulation.  Can you even try to fathom what $20-$25 billion put into circulation will do for the Gulf Coast Economy?   

But there are other strong indicators that the economy is rebounding.  Consumer Sentiment (Confidence) is growing.  “The University of Michigan’s preliminary January consumer sentiment survey showed a gain from 69.9 to 74.0; the best reading since last May.”  Christmas sales were strong.  “2011 was the best year for retail sales since 1999.  Total retail sales rose 7.7% last year, online and catalog sales were up 10.6% and overall sales have now improved about 20% from the depths hit during the Great Recession.”  Banks show an improving economy.  “The Federal Reserve’s new economic snapshot of its 12 banking districts showed 11 noting economic growth.  The anecdotal survey noted improvement in auto and retail sales, manufacturing and consumer spending in the last six weeks of 2011.”  Stocks are up around the world.  “The S&P 500 posted its second straight weekly gain across January 9-13, rising 0.88% to 1,289.09.”  Employment and the ISM Manufacturing Index continue to recover.    

Energy Development: “All aspects oil and its derivatives, natural gas and renewables are set to move aggressively forward.”  Hydraulic fracturing (fracking) process of extracting natural gas and oil from shale oil fields is booming with the private sector pumping tons of money into new wells.  If we get some leadership in the White House after elections that will develop a Comprehensive Energy Policy, the USA could soon be on its way to total Entergy Independence; and even have excess capacity for Energy Exports. 

The Auto industry is selling record numbers of cars.  Why?  The average age of US cars is 8 to 10 years depending on the statistics.  Steel prices are going up around the world and prices appear to be holding.  “ArcelorMittal has recently announced it is seeking a €30/mt ($39/mt) increase in strip prices for March deliveries as compared to prices for February deliveries.”  “The Turkish welded pipe market is still witnessing an upward trend.  In particular, Turkish welded pipe producers have increased their domestic prices by around $20-50/mt over the past two weeks following the upward trend of hot rolled coil (HRC) prices.”    This month most all US Domestic Pipe producers raised their prices on ERW Steel Pipe 6 percent or about $60 per Net Ton.  Inventories of Steel Pipe and Fence Supplies in the US are at an all-time low.  The least bit of Demand could push prices to record levels and start a round of panic buying.   

I really think we are in for an exciting year.  Sure hope I am right this time!

Please call, if we can help with any of your Steel Pipe or Fence Needs.  Phone, Fax or E-Mail your requirements today. 

Call Beth or Mike at 1-800-472-4204.  Thank you.

 Your Business Is Appreciated!

Robert A. Baker, President
Baker Sales, Inc.

Most all Domestic HSS Mills (Hollow Structural Sections – ERW Standard Pipe Products) raised their prices Friday, November 18, 2011 by $50.00 per Net Ton.

We here at Baker Sales, Inc. feel that this is in response to the greatly increased demand for OCTG and Line Pipe for oil and gas Directional Drilling.

We have seen some declines in Foreign pipe prices, but with these Domestic price hikes it may change the pipe market pricing.

The recent Anti-Dumpling suits against India, Vietnam, Oman and the U.A.E. (United Arab Emirates) may also lead to higher prices for ERW Standard Pipe products.

Demand worldwide is soft and pipe mills are struggling to keep their prices up.

We will keep you posted on any new price changes.

Hope You Have A Happy Holiday Season!

Make Some Memories

 
Please call one of our professional sales associates, Beth or Mike, if we can help with any of your Steel Pipe or Fence Needs. Phone, Fax or E-Mail your requirements today.  Thank you!

“Steel Pipe and Fence News You Can Use”

Shipping Conditions Will Get Worse Before They Get Better

Expect To Pay More For Your Freight

Companies expecting to find carriers (Truckers) who are ready, willing and able to offer their transportation services this fall might want to rethink their logistics strategies. According to one index of shipping conditions, the situation for the rest of the year will be one of rapid deterioration when it comes to available capacity.  (Translation: “No Trucks.”)

The deterioration reflects the current trucking situation, in which demand has completely utilized the available fleet capacity, leaving little room for even modest seasonal increases in activity.  A declining environment for shippers is forecasted through the remainder of this year and well into 2012.

“Events are unfolding as we had projected with regard to shipping conditions. Carriers have right-sized to meet current demand levels and are reluctant to add capacity given the high level of economic uncertainty,” says Larry Gross, senior consultant for FTR. “Moreover, tightening driver availability means that even those truckers that wish to add capacity are finding it difficult to do so. The result is higher freight rates even in the face of the soft economy.”  (Translation: “You are going to pay more.”)

Gross expects this situation will persist into next year as expected new government trucking regulations will reduce the productivity of the trucking industry, and therefore its effective capacity.  (Translation: “Government is expected to add to your misery.”)  Material Handling Management, September 2011.

Please call one of our professional sales associates, Beth or Mike,

if we can help with any of your Steel Pipe or Fence Needs. 

Phone, Fax or E-Mail your requirements today.  Thank you! 

Robert A. Baker, President