Are You Up for the Upturn?

I think that most companies are behind the curve and are still madly cutting costs (and people) and will be sick to their stomachs a few months from now as they find they can't meet the demand.

Most of my clients cut second tier and not journeymen.

A small percentage of companies in our industry have in fact closed.

Where small = low two digit percentage.

Steel inventories are at record lows and melting and rolling mills are shut down, meaning months of lead time to refill pipeline on nonstandard items.

We believe that we will no longer see domestically produced BOF bar steel in the US. I don't think they will bring the blast furnaces back to feed the BOF's.

No longer assurance of long campaigns needed to cover High fixed and operating costs. Scrap fed electric furnace shops are much closer to variable economics of high variable demand.

You might like my take on the actions of our industry's customer base:

Arrogantcustomers

milo