SMU Data and Models
SMU Market Trends: Will Virus Change Business Permanently?
Written by Tim Triplett
July 30, 2020
Two out of three steel buyers polled by Steel Market Update believe the coronavirus has permanently changed the way they do business. Sixty-five percent of the respondents to SMU’s questionnaire last week expect less travel and more working from home to become common practice, among other changes.
Following are some of their comments:
“There will be more emphasis on social distancing, personal hygiene, staggering workforce and management’s acceptance of telecommuting when possible.”
“Awareness of this virus will continue to keep us all at a social distance.”
“We’ve learned that most folks and functions can work from home. Some cannot. We may not need as many permanent offices as before.”
“We will have some back office staff working from home and expect travel budgets to be curtailed.”
“There will be less import interest due to future risk. Trade cases like Section 232 are still restricting imports. We could see some permanent shift to more domestic supply.”
“Travel will remain restricted. Working from home will become more normal. Credit insurance companies will continue to be conservative, and there will be a stricter focus on cash.”
“Reduced travel and more stay-at-home office personnel. Fewer customers will be making larger, longer-term commitments.”
“I see a permanent reduction in workforce.”
“Remote working may become the norm.”
Tim Triplett
Read more from Tim TriplettLatest in SMU Data and Models
SMU Survey: Steel Buyers’ Sentiment Indices contrast at year end
Both of our Sentiment Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times contract slightly, remain short
Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.
SMU Survey: Buyers report mills are slightly less flexible on pricing
Steel buyers of sheet and plate products say mills are still willing to bend on spot pricing this week, though not quite as much as they were two weeks prior, according to our most recent survey data.
December energy market update
Trends in energy prices and active rig counts are leading demand indicators for oil country tubular goods (OCTG), line pipe and other steel products
Apparent steel supply remained near two-year low in October
Referred to as ‘apparent steel supply’, we calculate this volume by combining domestic steel mill shipments with finished US steel imports and deducting total US steel exports.