“The wire that we use basically flies under the radar. It’s classified as a specialty category. Therefore, in my opinion, wire used in our industry will not be influenced by recent tariffs.” - Timothy Kurtz the availability of wire rod for the broom, mop and brush industries appears to be adequate, and I’m not seeing any negative quality issues for 2016.” He added that many steel manufacturers are participating in the “green revolution.” “For example, the World Steel Association recently came out with a sustainability policy that includes some of the largest steel manufacturers in the world. The steel industry is seriously addressing environmental issues and the safety of workers,” Caddy said. “This is part of a worldwide effort to focus on worker safety and training as well as carbon footprint.” During his presentation on the status of wire rod, Kurtz said global steel making capacity reached a peak in 2011. “Capacity really started increasing in the mid-1990s, corresponding with China building its infrastructure. In fact, China’s steel making capacity grew from 100 million tons in 1995 to 1.2 billion tons in 2011. Of course, this type of growth is unsustainable,” Kurtz said. “Currently, some of the key users of steel such as the mining, agriculture, construction, and oil and gas industries have seen their markets decrease over the past few years.” This, in turn, has decreased their need for steel. “It’s important to remember that many countries subsidize their steel industries. This can lead to cheaper steel imported into the United States,” he added. “There are domestic steel producers putting together cases for anti-dumping lawsuits, and there are a few (steel related) products that already have tariffs in place.” Kurtz reminded those at the meeting that wire used for broom, brush and mop production represents a very small potion of overall steel usage. “The wire that we use basically flies under the radar. It’s classified as a specialty category,” he said. “Therefore, in my opinion, wire used in our industry will not be influenced by recent tariffs.”
A
lthough today’s cotton mop yarn comes from textile mill waste or gin motes rather than virgin cotton, the current price of raw cotton still impacts the mop yarn industry. Mop yarn
Mop Yarn
“We are expecting a possible record regarding the amount of domestic cotton production despite a reduction in cotton acreage forecast for the coming year.” - Andrew Dailey
PG 8
prices often move up or down with cotton prices. Reporting on the status of cotton mop yarn was Andrew Dailey, of Jones Companies, Ltd., in Humboldt, TN. He reported that global cotton prices remain stable. “We are expecting a possible record regarding the amount of domestic cotton production despite a reduction in cotton acreage forecast for the coming year,” Dailey said. “It’s interesting to see how the past year’s production of cotton varied within the U.S. growing region. This, of course, is influenced by weather, depending on such factors as rain, sunshine and heat during the growing season. There was a long U.S. cotton growing season that took place (in 2015), which was benefical. “For 2016, we probably will not know how many acres of cotton U.S. farmers will plant until March or April.” Dailey also reported on added investments taking place in the United States concerning new spinning mill operations. This should add to the current supply of textile mill waste needed for mop yarn production. “It’s a positive step toward making sure an adequate supply of textile mill waste will be available in the future,” he added. When it comes to material for mop production, Dailey explained that cotton, rayon and polyester all compete with one another. Currently, rayon and polyester prices are relatively low, and expected to stay in check for the near future.
P
resenting a rundown on the supply of wood used to produce broom and mop handles was Jim Monahan, of Whitley Monahan Handle Co., in Midland, NC. Monahan reported that the majority of wood used to make handles for stick-good items produced in North America comes from three places: Brazil, Honduras and the United States. The major provider remains Brazil,
Wood Handles
“The availability outlook for tauri is excellent, while pricing should remain stable... Pine used for softwood handles, meanwhile, mostly comes from Honduras and the United States, and to a lesser degree, Brazil. Supplies are plentiful and prices have been stable.” - Jim Monahan
due to this country’s vast region of forests. Brazilian wood used in handle production involves tauari hardwood and pine softwood. “The strong U.S. dollar has helped hold down the price of handles in Brazil. There remains a tremendous amount of inflation in Brazil, with a very unsettled economy. Brazil also relies on an ethanol-based fuel source, so fuel prices there are higher than petroleum-based fuel right now,” Monahan said. “The forests where the tauri is grown is located in northern Brazil, with the logs transported to mills where they are cut into handles. Brazil is one of the few countries where handles are made from the entire log. The mills there don’t depend solely on scrap material. “The availability outlook for tauri is excellent, while pricing should remain stable.” Hardwood handles are also made from U.S. domestic poplar. However, Monahan added, this wood has recently increased in price and has not been used as much for handle production. “Most of the hardwood handles for the U.S. market right now are made from Brazilian tauri,” he said. “Pine used for softwood handles, BBM MAGAZINE | November/December 2015