SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/af5aa7eab90b42e18f9af3e712787eef.jpg)
Service Center Shipments and Inventories Report for August
Written by Estelle Tran
September 16, 2022
Flat Rolled = 53.9 Shipping Days of Supply
Plate = 59.4 Shipping Days of Supply
Flat Rolled
US service center flat rolled inventories edged down month on month in August, though the amount of material on order spiked, according to Steel Market Update data. At the end of August, service centers had 53.9 shipping days of supply on hand on an adjusted basis. This is down slightly from 54.7 shipping days of supply in July. There is some distortion in the months of supply data because August had 23 shipping days, compared to 20 in July. At the end of August, service centers had 2.34 months of supply, down from 2.74 months in July.
With the increase in shipping days, there should be an increase in shipments. Demand was slow in August because of typical seasonal factors, manufacturers revising down demand forecasts, and buying hesitancy as prices were falling.
Prices found a floor in August, which coincided with some opportunistic purchases. The amount of inventory on order jumped in August.
In August, there was also typical seasonal restocking to account for the expected pickup in demand in the fall. Mill price increase announcements, as well as resumed buying, have stabilized pricing. Some service center contacts have said that they were concerned about not having enough material to meet customers’ needs and also bought more out of concern about supply tightness caused by mill outages.
Multiple service center contacts said that they have rightsized their inventories to account for softening demand, and inventories were around historical levels for August. With the massive amount of inventory on order though, inventories can quickly swing back into surplus.
Plate
US service center plate inventories edged back down in August after spiking in July. Early production caused plate inventories to balloon to 63.8 shipping days of supply in July, and in August, that has gone down to 59.4 shipping days of supply. Plate inventories are slightly higher than historical levels, however, with the decrease in inventory, they are in better balance with demand.
In terms of months on hand, service centers had 2.58 months of supply on hand in August, down from 3.19 days in July. The amount of material on order also fell back to a more normal level in August.
Plate mill lead times have also shortened. Market contacts are still expecting prices to soften with the ramp-up of new mill capacity this year.
By Estelle Tran, Estelle.Tran@CRUGroup.com
![](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 […]