Service Center Flat Rolled Steel Shipments Rise & Inventories Fall
According to the Metal Service Center Institute (MSCI): “August shipments of steel products from U.S. metals service centers totaled nearly 3.2 million tons, or 25.5% more than during the same month last year. Steel shipments for the first seven months of the year of about 23.7 million tons are 19.3% higher than during the 2009 period. U.S. steel inventories of 7.4 million tons at the close of August were 32.4% larger than stockpiles of August 2009 and, at current shipping rates, represented a 2.3-month supply.
Shipments of steel from Canadian metal centers totaled 489,600 tons in August, or 17.8% more than during the same month last year. Shipments for the first seven months of 2010 of nearly 3.8 million tons are 15.5% higher than a year ago. Canadian steel inventories totaled about 1.3 million tons at the end of August, 33.8% higher than a year ago and equal to a 2.6-month supply at current shipping rates.”
According to recently released Metal Service Center Institute (MSCI) data, flat rolled shipments increased in August by 6,700 tons per day reaching 90,600 tons per day. With the improvement in shipments combined with a drop in total flat rolled inventory the months of inventory on hand dropped from 2.6 months to 2.3 months. Total flat rolled inventories went from 4,598,800 tons in July down to 4,488,600 tons in August.
Total Steel Products
MSCI data for all steel products showed similar results as the flat rolled data. Shipments of all steel products improved in August by a total of 8,900 tons per day. The daily shipment rate improved to 145,400 tons per day. The combination of an improved shipment rate along with a slight reduction in total steel inventories resulted in the months on had being reduced to 2.3 months vs. July’s 2.6 months (unadjusted).
Pipe & Tubing
MSCI pipe and tubing data also showed a mild improvement as shipments rose from 9,500 tons per day to 9,800 tons per day. Pipe & Tube inventories rose by a total of 13,700 tons while the months on hand declined slightly from 2.6 to 2.4 months (unadjusted). The total pipe & tube inventory at the end of August was 524,700 tons.
MSCI plate data maintained the trend with a slight uptick in shipments from July’s 13,900 tons per day to 14,600 tons per day in August. Inventory levels increased by 18,800 tons to a total of 820,400 tons. Based on the August shipment rate and tonnage the number of months of inventory of plate on the service center floors is 2.5 months (unadjusted).