Jonathan’s Journal: Less Metal for Fab, More Waiting for Everyone

What are metal buyers saying this summer? While metal markets fluctuate alongside various economic factors, if only you could chat with others like you to see what they’re experiencing.

Enter Jonathan, SteelNow Customer Operations Manager, who spends his days on the road doing just that!  Here’s what he’s been hearing from Texas metal buyers lately:

It’s still slow going for fabricators.

As we move through the summer, many customers are experiencing a slowdown in business, especially in the fabrication sector. This comes as a result of decreased demand from the end-users and OEMs that typically order their parts and products. As they fill fewer orders and employ smaller teams, fabricators’ metal needs are shifting to adapt to market conditions.

Cost and quantity are key considerations.

At a time like this, the problem isn’t finding metal that’s available, but getting it at a price that is cost effective for the metal buyer’s business. In some cases, this means rethinking what type of metal to use for a project, perhaps trading aluminum pipe for carbon steel. In others, it means carefully considering the cost of delivery.

Order quantities, which impact delivery costs, are presenting a challenge for some metal buyers. Rather than ordering lots of material for many upcoming jobs, they’re purchasing smaller quantities for specific projects. Some metal suppliers have minimum order requirements, and these are getting harder to meet as fabricators purchase less.