SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/aa0d30b179f1565cb213adba84733a53.jpg)
Service Center Shipments and Inventories Report for June
Written by Estelle Tran
June 16, 2020
Flat Rolled = 62.5 Shipping Days of Supply
Plate = 58.7 Shipping Days of Supply
Flat Rolled
Service centers reduced their flat rolled supply to 62.5 shipping days of supply at the end of June, from 67.6, according to adjusted data. In terms of months on hand, June inventories represented 2.84 months of supply, down from 3.38 in May. Overall, flat rolled inventories decreased 3.3 percent month on month.
Shipments increased 15 percent month on month with the help of two extra shipping days. June had 22 shipping days, while May had 20. The daily shipping rate also increased 4.5 percent month on month.
On-order volumes, however, decreased month on month, as service centers have been trying to scale back their inventories to align with demand. Service centers remain reluctant to place new orders, as prices continue to erode and demand growth has been slow. Market contacts have reported that shipments have been 60-70 percent of what they were a year ago, and they are mainly keeping to their contract minimums. Negativity regarding sheet prices continues as steel production capacity comes back online and Covid-19 infections trigger lockdown measures around the country. Given these factors and mill HRC lead times keeping under four weeks, we expect service centers to continue to purchase steel only as needed.
Less inventory was tied to contracts in June at 50.7 percent, down from 52 percent in May.
Plate
At the end of June, service centers scaled back their plate supply to 58.7 shipping days of supply, down from 61 days in May. Plate supply represented 2.67 months of supply in June, down from 3.05 in May. Service center plate inventories decreased 6.6 percent month on month.
Shipments increased 6.7 percent in June. However, when accounting for the two extra shipping days, the daily shipping rate decreased 3 percent. Service center contacts have been pessimistic about plate demand, as there have been few large jobs to bid and much of the work has been maintenance related. The lower shipment levels coincided with the price increases announced in May and June, as end-users resisted the price increases.
The mill price increases spurred service center purchases in June, and on-order plate volumes jumped month on month.
With plate prices stable, service centers seem content to maintain their inventories and are hopeful that end-users who were sitting on the sidelines as prices were rising will return to the market. Mill lead times have been keeping to about 4-4.5 weeks, according to SMU survey data.
The percentage of plate inventories committed to contracts was 39 percent in June, up from 29.5 percent in May.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/04/CRU_ET_headshot-150x150.jpg)
Estelle Tran
Read more from Estelle TranLatest in SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
Steelmaking raw material prices ease in July
The majority of steelmaking raw material prices declined in June, following the same trend seen in May, according to SMU’s latest analysis.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU price ranges: HR declines moderate. Are we near a bottom?
SMU’s sheet price ranges slid again this week. But the declines were more pronounced on tandem products whereas prices for hot-rolled coil held roughly steady.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
Some SMU Key Market Indicators improve, others remain near historic lows
SMU’s Key Market Indicators include data on the economy, raw materials, manufacturing, construction, and steel sheet and long products. They offer a snapshot of current sentiment and the near-term expected trajectory of the economy. All told, nine key indicators point lower, 16 are neutral, and 13 point higher. One thing worth noting: The nine indicators pointing lower are all lagging indicators. Many of those pointing upward are leading indicators.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU survey: Steel Buyers’ Sentiment Indices rebound
SMU’s Steel Buyers’ Sentiment Indices both saw improvement this week. Current sentiment ticked higher but remains near the four-year low seen earlier this month. Future Sentiment continues to indicate that buyers are optimistic for future business conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
SMU market survey results now available
The latest SMU 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.” Historical survey results are also available under that selection. If you need help accessing the survey results, or if your […]