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.

With these challenges top of mind, Jonathan wants metal buyers to know how SteelNow can help you find the metal you need. “With of our large supplier network, we don’t have to worry so much about pricing or order minimums,” he explains. “We’re able to reach out to multiple suppliers to find the best option for you, and we can typically pick up from the supplier and deliver in small quantities.”

Waiting for the White House.

While monitoring business conditions, metal buyers continue to anticipate the upcoming presidential election and its impact on the future of metal tariffs. The implications of this year’s election and the uncertainty that comes with it is a topic of discussion for customers, but not one they aren’t used to. As Jonathan describes it, “Customers seem to expect a level of uncertainty or even slowness every four years around election time.”

Customers seem to expect a change in business activity following the election, but are unclear what that will look like or when it will occur. The net effect is a sense of pause among customers, as they wait to see what the coming months will bring.

What’s next for metal buyers? Time will tell! Look out for more from-the field reflections in our next edition of Jonathan’s Journal.