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John Anton

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The declines will be very modest, however, because mills did a good job of cutting output to defend existing prices.

The price declines will come from improved domestic supply along with lower scrap and metallic costs.

Merchant bar demand continues to draw strength from business investment while the previously booming consumer end-markets lose some luster.

Automotive demand carried the market through the recession years but must now cope with a modest downturn in late 2005 and across 2006. Thus, special quality bars will continue to see softer demand from this key market in 2006.

Demand is high, but growth will be difficult for 2006. Galvanized sheet is used heavily in consumer durables-especially items such as sports utility vehicles. This sector carried the manufacturing economy during the recession; now it is due to cool.

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