MARKET OVERVIEW

摘要

For the last several months we've talked about the strength of the pipe and tube markets, particularly oil and gas focused pipe and tube, in what is otherwise a weak economic year. We have seen growth in industrial pipe and tube sector as well, but, while the numbers are better than recent years overall, they are still pitiful when compared to most other periods. We continue to see the economy stumble along and now, in the oil and gas industry, the rig count has fallen from an October '11 peak of 2017 to a July '12 average of 1945. In the industrial sector, this economy is beginning to take its toll on participants in the industry from the supply chain side. In the energy sector, oversupply in weakening periods almost always leads to inventory overhang and lower prices. In these types of market conditions, a short supply chain is important to allow adjustment to meet demand changes and inventory targets as quickly as possible.