Steel Products
Flat Rolled Apparent Inventory Deficit at Highest Levels Since August 2009
Written by John Packard
August 16, 2013
Service Center Deficit Will Help Keep Mill Prices Firm
Flat rolled inventories are at a 466,000 ton deficit according to Steel Market Update proprietary analysis of the recently released MSCI service center inventory data. The 466,000 ton deficit is the largest one we have measured since August 2009 when it was measured at 604,000 tons.
This deficit will help keep mill and spot prices firm until it is addressed (or demand drops significantly).
Flat Rolled Receipts
Flat rolled distributors received 2,102,700 tons during the month of July. This is up from the 2,081,000 tons received during the month of June. There were 22 shipping days during the month. The daily receipt rate was 95,620 tons down from June’s 104,050 tons. The deficit increased from June’s 397,000 tons due to more steel being shipped out than received. During the month distributors shipped 2,236,300 tons.
Plate Receipts
Distributors received 334,000 tons of plate during the month of July. This is down from 359,600 tons received during the month of June. The daily receipt rate was 15,600 tons down from 17,950 tons the prior month. Total plate shipments during the month of July were 335,300 tons, one thousand tons greater than receipts.
Pipe & Tube Receipts
In July pipe & tube distributors received 242,100 tons of tubulars, up from 217,500 tons during the month of June. The daily receipt rate was 11,040 tons, up from 10,850 tons in June. Shipments totaled 232,500 tons (+9,600 tons in inventory).
Total Steel Products
Distributors received 3,359,800 tons of new steel during the month of July. This is up from the 3,267,800 tons received the previous month. The daily receipt rate was 152,760 tons in July, down from 163,430 tons in June. Shipments totaled 3,484,100 tons and inventories were reduced by 124,300 tons.
John Packard
Read more from John PackardLatest in Steel Products
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]
SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.
HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.
Beige Book: US markets remain cautious amidst volatile pricing environment
Sluggish economic activity across the US was largely attributed to uncertainty caused by tariff policies and growing cost pressures, according to the US Federal Reserve’s (The Fed) latest Beige Book report. The Fed’s latest economic report, posted on Sept. 3, consists of economic findings from the six weeks preceding Aug. 25 throughout 12 districts. Economic […]