232 caused inventory overhang: Synalloy

摘要

Year-over-year volume declines in the steel pipe market during 2019 are a function of last year’s Section 232 tariffs, which caused buyers to bloat their inventories in response to supply uncertainty, according to the top executive at Synalloy. Second-quarter sales of seamless carbon pipe fell 20.2% compared with the second quarter of 2018, Synalloy said in its quarterly earnings release on Tuesday August 13. The backlog at the company’s steel tanks subsidiary dropped by 61.1% over that period, partially because of the increased throughput during last year’s quarter. “The market for welded stainless steel pipe has been especially challenging over the past several months,” president and chief executive officer Craig Bram said in the press release. “The combination of heavy buying in the first half of 2018 by distribution center in advance of the Section 232 tariffs and consolidation within the supply chain has resulted in excessive inventories and associated destocking.”