I was interviewed and later quoted in the trade press recently.
American Metal Market
January 3, 2007
Feb. stainless surcharge increase sparking fears
By Maria Guzzo
They asked me if material substitutions away from stainless were an issue for us or our customers. We’re mostly small parts manufacturers, so I said no. The raw material content relative to die cost meant that people wouldn’t change for what they might perceive as a momentary blip in pricing. And if they were to switch, what would they switch to? If they want rust proofing, they still need something. If they switch to carbon steel, Zinc is also up.
And I commented on how so much of the recent run-up in metals pricing is driven by speculators who don’t know the market, and don’t realize how much damage is done to the market by this kind of uncertainty.
We also talked about China and differential tarifs.
Unfortunately, their web site policies prevent me from quoting from the article. I think you might be able to follow this link if you are a subscriber, but I can’t verify that.
AMM is a subscription service for people “in metals”. There is a trial 2 weeks subscription you can try out.
I’ve written and asked if they can make an exception in this case, so I can blog a quote to my own comments. If they agree, I’ll change this article appropriately. In any case, check them out. If your business has a lot to do with metals, they might be worth the entry price. At least do the trial. It’s 2 weeks of daily articles emailed to you in PDF form, and a web site you can look things up on.