Steel Products
Service Center Inventories Remain Close to 2 Months Supply
Written by John Packard
August 26, 2013
Flat rolled steel service centers held 2.17 months of inventory on their floors, according to the results from our latest steel market survey completed on Thursday of last week. This is essentially unchanged from the 2.15 months measured at the beginning of the month and in line with the MSCI data reported at the end of July.
Both service centers and end user inventories remain relatively balanced. The percentage of service centers reporting their company was “maintaining” inventories levels was 70 percent at the beginning of August and 64 percent this past week. Manufacturers reported 71 percent at the beginning of August and 75 percent last week. Those distributors reporting their company as reducing inventory levels jumped from 17 percent the first week of August to 29 percent this past week. SMU believes this is due to the opinion at the service center level that mill prices have peaked. Manufacturers remained fairly stable with 19 percent reporting their company was reducing inventories at the beginning of August and last week 17 percent reported the same way. Those building inventories were in the single digits for both distributors (7 percent) and end users (8 percent).
John Packard
Read more from John PackardLatest in Steel Products
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."
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.
CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.