Automotive demand carried the market through the recession years but must now cope with a modest downturn in late 2005 and across 2006. Thus, special quality bars will continue to see softer demand from this key market in 2006. |
Demand is high, but growth will be difficult for 2006. Galvanized sheet is used heavily in consumer durables-especially items such as sports utility vehicles. This sector carried the manufacturing economy during the recession; now it is due to cool. |
Merchant bar demand continues to draw strength from business investment while the previously booming consumer end-markets lose some luster. |
The declines will be very modest, however, because mills did a good job of cutting output to defend existing prices. |
The price declines will come from improved domestic supply along with lower scrap and metallic costs. |