RS
#Yes, <UNK>, it is <UNK>.
I will address that.
We have seen I think the tariffs and the fact that China is pretty much out of the market, I think that has helped more stability on the pricing side for us.
Most of our purchases are domestic, but there definitely has been more stability on pricing, I think that is one reason that the January base price increase happened, and we think that increase is in place.
And then we think also, if you look at the fairly significant increase in the surcharge in January, we think that surcharge is in place.
Looking out what we think will happen, February the surcharge will be down a bit, we think March down slightly also, but based on what we believe will happen with nickel and chrome, maybe we will start to see in April these surcharges may start to move back up slightly.
But overall, our demand, we are pleased with our stainless demand, and our stainless business, it has been one of our higher growth areas.
Yes, we think that there was a little bit of that, but again, nothing that was super, real significant.
And really for the same reasons, right, that we talked about on the carbon side, with the customers that we are calling on and doing most of the business with, are not contractual related OEMs, they are small to mid-sized job shops, sheet metal fabricators, and what not.
So they are not as apt to do a larger buy, so we are guiding, if we were doing business directly with appliance makers, or kitchen equipment manufacturers, that were massive, we would probably seen more of that.
But as it turned out, yes, that was a pretty significant increase.
And those decreases that we have seen recently were very minor, very minor.
Sure, good morning <UNK>.
Yes, <UNK>, in our stainless product group it is a pretty broad mix, so a good portion of it is more of the stainless flat rolled, where we have followed the market trends more from a pricing standpoint.
But then we have also got a lot of stainless long products in there, a lot that goes into energy, and so in that market, we haven't seen necessarily the price increases.
And even generally those products generally maintain, hold their prices a little bit more, and don't follow the general market increases, the way that the flat rolled does.
Yes, surcharge there is less significant, particularly as a percentage of the total price, and normally when we are talking surcharges, we are talking the 304 stainless product, which is the bigger volume product.
We think that we have a pretty good footprint right now as we speak in the Aerospace business, especially after that acquisition that we made in 2014.
So we are going to look at any and all opportunities, okay <UNK>.
And if something comes along with a titanium related or specialty metals related, or anything else, Aerospace, we enjoy that market, we think that it is very strong, it has got a lot of legs, we think buildings are good for many years to come.
So any opportunities that came along on Aerospace, we would look at it very, very closely.
But we are not actively going out and shaking the trees for titanium related, or what have you.
<UNK>.
Yes.
And we do have a titanium company that we acquired back in the early 2000s, just a small portion of our overall product mix, so as <UNK> said, we will keep looking at all of the opportunities that are out there, to see what is a fit.
But in Aerospace distribution, there are limited opportunities out there.
But <UNK>, we like that space, we would definitely look at any opportunity there.
Thank you.
No.
Other than one of our major suppliers, Zekelman Industries, seems to be enjoying, I think he bought the very first coil that ever came off of their line.
We have not seen that.
Are we anticipating that we will be seeing that shortly.
Yes we are.
And we are in touch with them, <UNK> and his managers are on top of that.
But as of today, that we are sitting in this room, okay, we are not seeing an impact from that company.
Yes.
Yes, exactly.
And I think probably the people that will see Big River first will be the tubers.
Okay.
That is where I would go if I were them.
I would have to say that really we are in the mood for a large acquisition if it fits anytime.
I mean our balance sheet, and 30.3% debt to capital is solid as a rock.
The availability of cash is certainly there.
And our appetite is there, it is just a matter of when, and if the deal that we look at is appealing.
Yes, and making sure that it is most dependant upon there being that good company out there of that size, we have only used our stock one time for an acquisition.
We are open to doing that, but generally the sellers want cash.
And I would also like to comment, <UNK>, that I certainly wouldn't consider our stock price high, I would think that we are finally showing a more reasonable value, with much more room to grow.
Thanks <UNK>.
Okay.
Thank you.
On behalf of our team here at Reliance, I would like to thank all of you for participating in today's call.
I would also like to thank our loyal employees, customers, suppliers, and stockholders, for their continued support and commitment, which has helped shape Reliance into the strong company that it is today.
We look forward to a productive 2017.
Have a great day.
Thanks for joining us.
