The phrase ‘fits and starts’ refers to an action being done in an intermediate or sporadic pattern. Given the balance of positive and negative data points driving current market conditions, you could say that this phase is a fitting description for our road to recovery.
In the August episode of Cup o’ Joe, Nick Webb, Ryerson’s director of risk management and commodities hedging, gave us a lot to consider in this regard. For example, while freight rates seem to be improving, import prices remain high; and while manufacturing levels are in positive territory, employment rates continue to struggle.
All being said, the road to recovery could be a balancing act going forward.
Much of the content covered during this presentation had some form of a forward looking statement or idea. Please refer to the safe harbor provision at the bottom of this page.
Could Employment Rates Be Key to Recovery?
North American manufacturing activity remains strong, despite a lower PMI (Purchasing Managers’ Index) from the Institute for Supply Management for July compared to the previous month.
But could employment rates be a key to a more sustained recovery? Webb talks through how sporadic return-to-work patterns across the country could be delaying our rate of recovery.
An Alleviation in Freight
Subtle signs point to alleviation to the woes that have plagued the freight market for the better part of 2021.
Webb considers a correlation between lower spot rates and the industrials metal index. Could it be telling us something about the future of metals pricing?
The Soaring Rate of Imports
Are you considering the import route for metals these days? You may think again when you see just how high rates for shipping containers continue to rise.
The Parallels Between Chinese Lending and U.S. Metal
Over the past few months, Webb has talked through the importance of watching the Chinese Credit Impulse Data in relation to the North American metals market. Here, he overlays this data point with the Bloomberg Commodities Index to draw some interesting parallels.
Carbon Steel Prices Remain at Historic Highs
Not much has changed on the carbon steel front, as prices continue to flirt with five-year highs, despite some choppiness as of late. But what are the signs to watch with regards to when this pattern could possibly reverse course?
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Certain statements made in this presentation and other written or oral statements made by or on behalf of the Company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding our future performance, as well as management's expectations, beliefs, intentions, plans, estimates, objectives, or projections relating to the future. Such statements can be identified by the use of forward-looking terminology such as “objectives,” “goals,” “preliminary,” “range,” "believes," "expects," "may," "estimates," "will," "should," "plans," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. The Company cautions that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact our business are: the cyclicality of our business; the highly competitive, volatile, and fragmented metals industry in which we operate; fluctuating metal prices; our substantial indebtedness and the covenants in instruments governing such indebtedness; the integration of acquired operations; regulatory and other operational risks associated with our operations located inside and outside of the United States; impacts and implications of adverse health events, including the COVID-19 pandemic; work stoppages; obligations under certain employee retirement benefit plans; the ownership of a majority of our equity securities by a single investor group; currency fluctuations; and consolidation in the metals industry. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth above and those set forth under "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2019, and in our other filings with the Securities and Exchange Commission. Moreover, we caution against placing undue reliance on these statements, which speak only as of the date they were made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise