News - January 2008 Webcast Script
Hello. I am Nicole Busken with the first installment of the United Performance Metals' monthly update. We hope that the monthly update will become an important source of information for your purchasing decisions.
Introducing UPM
Ferguson Metals and AIM International have started the year with a new name - United Performance Metals. The new name is the result of the merging of the two companies into a single entity that will operate from the former Ferguson Metals' facility in Hamilton, Ohio. United Performance Metals promises to deliver its customers more in 2008. Stay tuned for more information on the new products and services offered by United Performance Metals.
Nickel Rollercoaster Likely to Continue
As 2007 came to a close, many were hopeful that Nickel had settled into a more stable trading pattern with prices moderating between the $11.50 and $12.00 per pound range. Unfortunately, the first half of January points toward an extended period of price fluctuation. Over the past several days prices have moved into the $13.00 per pound trading range. The average price of Nickel for December of 2007 was $11.79 per pound while the first few weeks of 2008 already show the average at $12.70 per pound. Those searching for a change in the fundamentals in supply and demand which would precipitate the climb in Nickel prices are likely to be disappointed. All indications are that Nickel's climb this year is more the result of a re-indexing of funds than a reflection of supply-demand issues. What does this all mean to those who purchase metal with Nickel content? "I think that it will unfortunately mean that buyers will be forced to continue the market vigilance that they've had to practice over the last two years to make the best purchase decision for their organization. It already looks like February should be an active month for service centers as buyers attempt to take advantage of the lower surcharges, since March's surcharges will be up," commented Wayne Ferguson of United Performance Metals.
Scrap Prices Inching Up in First Month of '08
Scrap prices are another important data point for metal buyers to keep their eye on. Steel mills are the largest users of scrap which can make scrap a good indicator of mill activity. However, it is important to consider whether that activity is from domestic or foreign mills. Most recently, the relatively weak position of the U.S. Dollar has made our scrap very attractive for exportation. Early January reports in the American Metal Market News showed several scrap dealers reporting low scrap inventory because of increased export activity. The good news is that it appears from a global perspective manufacturing is off to a good start in 2008. Steel buyers should monitor trends in scrap pricing as a useful indicator as they seek to make educated purchasing decisions. Mills See Strong Demand for Specialty Grades in Early Stages of January 2008. Early indications from mills supplying United Performance Metals' with specialty grades point toward a somewhat tight supply. "Over the first few weeks of 2008 we've seen lead times on items like our tempers and PH grades continue to push out," commented United Performance Metals' Director of Purchasing, Raymond Miranda. This sentiment was echoed by a midwest mill representative who commented that demand for specialty grades remains strong based upon aerospace, oil and gas, and petrochemical markets. While United Performance Metals has worked hard to keep a strong inventory of these items, buyers are encouraged to maintain close communications with their United Performance Metals' representative over the coming months.
Spotlight - Products and Services
Each month we'll spotlight a different product or service offered by United Performance Metals. This month we take a look at our cobalt alloy line that includes 188 and L605-two grades that are heavily used in the aircraft and land-based turbine engine market. United Performance Metals' Vice President of Sales, John Niehaus, commented, "Our history working with cobalt alloys has allowed us to understand market requirements. This has enabled us to develop an inventory position that addresses customers' needs, including sheet thicknesses from .020 through .080 and a range of plate between 1/8 and ¼ inch thick. For more information on United Performance Metals' cobalt alloy offering, call your United Performance Metals' representative today.
This is Nicole Busken reporting for United Performance Metals. Best wishes for a successful 2008.
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About United Performance Metals
United Performance Metals is a leading supplier of specialty stainless steel and high temperature alloys. In business since 1982, United Performance Metals has experience serving the needs of customers in diverse markets including aerospace, aircraft, automotive, medical, food service, house-wares, petro-chemical and many others. For more information on United Performance Metals visit us at www.upmet.com, call us at 1.800.347.2376 or email sales@upmet.com.
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