Metal fabrication and the metals markets prepare for a Trump presidency

Over the years, when I’ve spoken to economists and industry watchers, both of the metals market and metal fabricators, they really didn’t talk much about who sat behind the Resolute Desk in the Oval Office. Although historically the Federal Reserve has had significant economic powers, the presidency itself, they said, really doesn’t have tremendous impact on the economy, despite the campaign rhetoric we hear.

This time around, it’s different.

“Fallout from the recent elections will impact every aspect of our existence as both manufacturers and followers of the metal markets. At present, the fields of industry and finance seem to be embracing the new leader’s proposed vision of emboldened domestic manufacture. We anticipate a prosperous year ahead for metals and metals businesses if emergent conditions hold long enough to establish momentum.”

So wrote Alan Bear, president and CEO of Bear Market Intelligence, New Ulm, Minn., in a posting on LinkedIn. Bear predicted that the expected infrastructure spending is already making metals markets move. “We are already seeing emergent stages of a shift in fundamentals for scrap as markets jumped $30 a ton in the Midwest earlier this week.” Steel and nickel prices may see “a renaissance period” as demand ramps up for coal, scrubbers, and other power generation equipment markets.

Bear summed the metals purchasing climate this way: “In short, if you did not lock, be prepared to pay higher numbers for some time to come.”

This is FABTECH® week in Las Vegas. As the show opens tomorrow, having Donald Trump as our president-elect seems a little appropriate. Voters have chosen their wild card candidate. Will that give them the winning hand they want? Probably not immediately, but on Tuesday their voices were heard. Change is coming. Business leaders around the country and the world, including the metal fabricators who attend the show this week, are hoping America plays its cards right.