1/21/2014 10:50:00 PM
FIN SURVEY
A majority of fastener manufacturers reported steel prices were up over the past six months and finished goods and raw material inventories as 2014 began were at about the same level as a year before.
• More than a quarter report strong increases in steel prices; another 37% moderate increases and 28% found steel prices over the past six months at the same level. Only 4% reported moderate price decreases.
Finished Inventory: A 54% majority reported finished goods on hand at the end of 2013 remained flat. A total of 37% found finished fastener inventory moderately up and 4% moderately down.
The FIN End of 2013 Finished Goods Index was 3.7, edging 3.6 a year ago.
Raw Material Inventory: A 53% majority reported current raw material inventory was approximately the same as a year earlier. Both those reporting moderate increases and moderate decreases in raw material inventory were each at 20.7%.
At 3.6 the the end of 2013 Raw Material Index edged the 3.5 at the end of 2012.
Steel Prices: About 37% of fastener manufacturers had no difficulty obtaining raw materials during 2013.
Raw Material Costs: Fastener manufacturers are not anticipating major raw material cost increases with 46% predicting prices would remain about the same and another 41% forecast increases would be “Moderate.” Just 2.7% predicted a strong increase in raw material cost, countered by 5.2% expecting a “Moderate” decline.
Percent of Operating Capacity: Fastener manufacturers reported operating at a range from 35% of capacity to 100% for 2013, with an average 71.4%. That was an increase from 69.3% for 2012.
Manufacturers forecast a slight increase for 2014 as they projected operating at an average of 73.9%.
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