Jonathan’s Journal: Come What "May" for Metal Buyers

As a metal buyer, you might be keeping an eye on the market and how it will impact you. You see what’s happening in the industry, but how does that translate to the day-to-day lives of buyers like you? Here’s what SteelNow Customer Operations Manager Jonathan has been hearing this month during his weekly visits with customers:

Business has been less consistent.

In recent weeks, some of our customers have been taking on fewer jobs. While there’s still business to bid for, customers’ own clients seem more hesitant to approve and put down initial payments for future projects. As a result, some of our customers are working one order at a time, or scheduling just one or two jobs ahead, rather than taking on long-term projects. The experience looks different by end market, but a general sense of caution is pervasive.

Elements of uncertainty.

So, what’s causing the slowdown? One factor is the downturn being experienced across the metal and other industries, but the 2024 presidential election may also be impacting buying decisions. The results of the November election will dictate future economic policies, and of most concern to our customers are those policies affecting foreign tariffs. Read more about current how current White House tariff decisions may impact Texas metal buyers in the May Market Minute.

Taken together, market conditions and the upcoming election are potential factors limiting business for customers or keeping them cautious about their own expenditures. “It seems like customers are being careful,” says Jonathan, “trying to see what's going happen with metal and commodities. I don't think anybody wants to overspend or go into a growth trend because it's not the right time.”

Here’s how buyers are responding.

While business is light, metal buyers are getting creative! Some of our customers are pivoting to service work, offering repair and maintenance services on previously sold products while clients are less willing to replace and purchase new ones. This type of work helps keep business steady and requires less metal be purchased by our customers.

However, when they do buy, price is important. As Jonathan explains, “because customers are taking their time and buying less often, they want to make sure that they're getting as good a deal as possible.” Even so, price sensitivity has its limits where service is concerned, and poor communication or lead time delays can turn customers off to even the best deal. Finding material and getting it delivered quickly is still a top concern for customers, and that’s where Jonathan has seen SteelNow support metal buyers. “If a customer has two or three suppliers that don't have the right material or lead time, SteelNow can often step in and find the metal you need because we have 60 different suppliers in our network.”

That’s all for now! Stay tuned for our next installment of Jonathan’s Journal for more thoughts from the road.