Copper surged 3 percent to hit 4-1/2 month highs on Thursday, boosted by a rise in U.S. durable goods orders and a jump in new home sales which lifted the outlook for the economy and demand (as noted by Reuters 3/26/09.)

We have seen a slight retreat today less than 2 cents/lb. It appears this might be in response to Industry News that 2009 will see a worldwide surplus in copper production of 500,000 tons. Continued uncertainty regarding the macro US economic outlook and a falling dollar all served to nudge Copper down. Recent data from analysts  have copper exchange prices dropping to an average of $1.30 in 2010.

From my perspective until US demand steadies and the general economic outlook improves I see price pressure on the downside for base metals especially copper. However, given the current markets volatile tendencies any efforts toward restocking would seem premature. http://www.forbes.com/feeds/reuters/2009/03/26/2009-03-26T172656Z_01_LQ244746_RTRIDST_0_MARKETS-METALS-UPDATE-6.html?loomia_ow=t0:s0:a41:g29:r2:c0.001800:b23294074&partner=loomia

I have spent the past two days in Scott Brass’s former Mishawaka Plant reviewing and bidding on equipment. It was a poignant reminder of the difficult environment in which US Manufacturing finds itself. Not more than a year ago, I walked the aisles of that once bustling location, watching material being rolled, tinned, slit and shipped. Then what I observed yesterday were empty spaces, save the opportunistic buyers present to bid. I was particularly saddened to see two Bell Annealing Furnaces with peripheral equipment sold for less than $3K. What a waste- as they surely are headed for the scrap heap. Still there are lessens to be learned here. Remain proudly independent, Manage Your Risk, Protect Your Cash, and thus remain the Boss- don’t let the bank run your business.

The Indianapolis Star reported on March 16 that Sumco may shut operations in Indianapolis and terminate 110 workers if the business can’t be sold by May 12.  Sumco has been Supply Chain Partner to ABC Metals for many years and a leading supplier of electroplating for coil materials for many years;  primarily the Automotive Industry. 

Their potential departure would cause a ripple effect in the near term. Nonetheless, be assured that ABC Metals has the broad supply base to continue to service your plated coils needs without interruption or delay. If you are not a current customer let us show you how we can bridge the gap potentially caused by this event.  We hope for Sumco’s survival via a buyer being found, but are prepared for the worst and we will continue to supply your plated material needs through our diverse supply chain.

See also: http://www.indystar.com/article/20090317/BUSINESS/903170319/1003/BUSINESS

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