The Metal Service Center Institute (MSCI) reported domestic service center shipment and inventory data for June this morning. The key data being flat rolled steel inventories increased by 377,200 tons and the 4,497,500 tons are the most seen since February 2009. Flat rolled inventories have been steadily growing since August 2009 (10 straight months).

The current flat rolled inventory level of 4,497,500 tons is 901,400 tons more than at the end of January 2010 and is 1,736,700 tons higher than August 2009 which was the low point in the last cycle.

Months on hand for flat rolled remained at 2.2 months (unadjusted – 2.3 months seasonally adjusted) based on a slight increase in the daily shipping rate. The shipping rate improved from 92,900 tons per day to 93,400 tons per day.

Looking at the overall steel market (all products) tonnages shipped increased from 145,800 tons per day to 146,300 tons (all flat rolled – flat on other products). Total inventories also increased from 6,969,500 tons to 7,378,500 tons.

SMU last inventory report taken the first week of July had inventories at 2.14 months based on our survey respondents. We are taking our second survey at this moment and will report our findings a little later this week once the picture becomes clearer.

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