Steel Products
Canadian Service Centers Struggled in December
Written by John Packard
January 18, 2013
Canadian steel service centers shipped a total of 338,600 tons (all products) during the month of December 2012 – this represents a decline of 19.3 percent compared to last year (not adjusted, 16 percent seasonally adjusted) when the Canadian distributors shipped 419,500 tons.
At the end of December, Canadian distributors ended the month with 1,832,800 tons of inventory on their floors – 21.6 percent more than at the end of December 2011. The Canadian service centers are now holding 5.4 months of inventory (+2.0 months) on a non-seasonally adjusted basis and 3.8 months (+0.3 months) on a seasonally adjusted basis on their floors.
Carbon Flat Rolled
Canadian flat rolled shipments totaled 164,600 tons during the month of December which is 78,000 tons lower than what was shipped during the month of November. The December 2012 shipment total was 19.3 percent below 2011 on a seasonally adjusted basis.
Flat rolled inventories exceeded 1.1 million tons coming in at 1,122,900 tons or 31.1 percent above 2011 levels. Canadian service centers were holding 6.8 months of inventory on a non-adjusted basis (+2.7 months) or 4.7 months on a seasonally adjusted basis (+0.5 months). Canadian service centers ended 2011 with only 2.9 months of inventory (seasonally adjusted).
Plate
Plate shipments totaled 71,100 tons for a daily shipment rate of 3,700 tons per day (same as last year). Total shipments were 1.1 percent lower than one year ago (seasonally adjusted).
Plate inventories totaled 326,300 tons and were 14.3 percent higher than one year earlier. Canadian service centers held 4.6 months of inventory on a non-adjusted basis (+2.2 months) or 3.3 months on a seasonally adjusted basis (+0.5 months).
Pipe and Tube
Canadian distributors shipped 37,400 tons of pipe and tube during the month of December – this is 22.4 percent lower than the prior year on a seasonally adjusted basis. The average daily shipment rate was 2,000 tons per day.
At the end of the month, Canadian service centers carried 133,600 tons of pipe and tube in stock – this is 7.1 percent more than one year earlier and represents 3.6 months supply on a non-adjusted basis (+1.1 month) or 2.5 months on a seasonally adjusted basis (-0.1 month).
John Packard
Read more from John PackardLatest in Steel Products
FabArc Steel Supply completes projects in Mississippi, Georgia
FabArc Steel Supply announced this week the completion of two large-scale projects in Georgia and Mississippi.
US rig count slips, Canada ticks higher
ncreases through September, according to the latest Baker Hughes rig count data.
CRU: EC to toughen steel safeguards
The European Commission proposes cutting its steel import quota by almost half, with volumes exceeding the limit facing 50% duties. The region’s steel industry welcomes the move, while other steel-producing nations fear the consequences. CRU published an insight before this announcement, noting that more restrictive trade policy could significantly raise the cost of marginal supply […]
US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."