February 2024 Volume 6

MATERIALS

which were accepted. In this round of negotiations, customers wanted some of the ’23 price increases back,” said one source. He expects stable prices for SBQ in ’24 with base prices at respectable levels and scrap surcharges fluctuating within a narrow band. Gibbs noted that the SBQ industry can be hyper-cyclical with destocking and restocking in various markets. Last year, volumes were relatively flat after a couple of strong years post pandemic. “Inventories don’t feel too high. I think the market is just trying to find some balance. We don’t expect any great swings in consumption one way or the other,” he said. One intangible factor is how the nation’s political strife will impact the market psychology. “The more people get distracted by the election talk and the anxiety that comes with it, the more they end up not making decisions. An election year is never a stimulant to business,” he said. On the plus side, once the election is over, the market can expect a bump from pent-up demand.

Tim Triplett has covered the metals markets for nearly 30 years as a former editor at Metal Center News and Steel Market Update. Tim will be a periodic contributor to FIA Magazine. He can be reached at timtriplett0608@gmail.com.

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FIA MAGAZINE | FEBRUARY 2024 44