Network Metals LLC

We’ve been getting some inquiries about possible positive signs for the auto industry, and whether a rise in steel and aluminum demand will come about in conjunction with a tangible recovery there. On our end, business is still pretty bad. The auto supply manufacturers tell me that they have not shown any real improvement in business. In fact, almost every week there is a new Chapter 11 filing in that sector. Ultimately we need to separate the car sales figures, which are probably just sales of existing inventory, with the raw material ordering (which would signal new demand). Based on what we are seeing from the raw materials side, there is very little to get excited
about. As far as steel output restarts, we still believe it is restocking and they will be waiting for customers to order. Is the market better than in Q1? Yes, but only slightly.