SMU Data and Models

SMU “Flash” Report: Distributor Inventories Dip to 2.6 Months
Written by John Packard
April 9, 2018
The following report was originally published last week for our Premium level members. The SMU service center inventories months of supply index began in July 2017 and we continue to add flat rolled and plate steel distributors to our confidential data provider list. If you would like to be added to our data provider list please contact us at: info@SteelMarketUpdate.com
So far this month, Steel Market Update has had a strong response rate from the service centers registered as inventories data providers. As of Thursday afternoon, we had 79 percent of the steel service center data providers respond to our inquiry about their flat rolled and plate steel inventories.
The headline number is flat rolled inventories dropped, although not as radically as some might have been thinking. At the end of February, steel distributors were averaging 2.8 months of supply on their floors. According to our Flash analysis, SMU is seeing inventories dropping to 2.6 months of supply.
This is the lowest level we have recorded since we began measuring flat rolled inventories as of the end of July 2017.
Of those responding about March inventories:
• 21% reported inventories as being higher than what was reported as of the end of February.
• 21% reported inventories as being the same as the end of February.
• 58% reported inventories as moving lower compared to the end of February.
We anticipate that we will have our final service center inventories report available either over the weekend or early next week.
If you have any questions, please contact John Packard at John@SteelMarketUpdate.com or 800-432-3475.

John Packard
Read more from John PackardLatest in SMU Data and Models

SMU Survey: Current Sentiment tumbles on tariffs, uncertainty, soft demand
SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index dropped to one of the lowest levels recorded in over five years, while Future Buyers’ Sentiment inched higher.

SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]

SMU Survey: Buyers report little change in sheet and plate lead times
Steel buyers report steady lead times for sheet and plate products, a soft-sideways trend we've seen since May.

SMU Survey: Mills remain flexible on pricing, buyers say
The majority of steel buyers responding to our market survey this week continue to say that mills are negotiable on new spot order prices. Negotiation rates have remained high since May.

Service centers: Mill orders improve in July
SMU’s Mill Order Index (MOI) moved higher in July after rebounding the month prior. The shift comes after mill orders declined from March through May.