|
|
Article: Steel drum tags start to rebound after tough year.
- Article from:
- Purchasing
- Article date:
- February 10, 2000
CopyrightCOPYRIGHT 2000 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The market for steel drums has been tough for producers in the past few years. Oversupply in the industry and stiff competition have led to low prices.
Also, unfavorable economic conditions in Asia during the past two years have damped demand for U.S. exports. This has taken its toll on the steel container market.
But with economic recovery under way in the Far East, rising raw material prices for steel, and development of new products, some steel drum producers see higher prices and improved demand ahead. One producer estimates that demand will grow 2.5%-3% in 2000.
Because about 70% of steel drum makers' manufacturing costs come from ...