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Early signs of a rebound for beams: nonresidential construction tends to lag the economy. With an economic turnaround well underway, and steel prices markedly higher, the future looks better for structural steel.

Article Excerpt
Even though its main consuming sector--nonresidential construction--is still in the doldrums, the North American structural steel market finally appears to be showing signs of life, bolstered in part by declining steel imports and increasing export opportunities. So far, mills are feeling this pickup more than service centers, however.

"Demand has intensified in the last six months to the point that we are basically sold out at this time," says Ray Bauer, senior vice president for sales and marketing at SMI Steel's Alabama and South Carolina units.

Other mill executives are more subdued in their assessment of the market, including Joe Stratman, vice president and general manager of Nucor-Yamato Steel Co., Blytheville, Ark., who reports that demand has been improving steadily, but slowly, since the end of last year.

Statistics from the American Iron and Steel institute have been impressive, says Peter Wright, director of marketing for TXI Chaparral Inc., Midlothian, Texas. AISI reported nearly a 30 percent surge in domestic structural steel shipments in January 2004 compared with January 2003.

Meanwhile, as of April, service centers described the structural steel marketplace as still fairly flat, especially when compared with other steel products. Most were hopeful the second half would bring an increase in demand and that next year will be even stronger.

"Part of demand has been put on the shelf near-term with some fixed-price contracts being undermined by material price increases," says Marty...

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