Metalcenter steel shipments down 29% from ‘08
NA steel deliveries increased just 1.6% in September
Tom Stundza -- Purchasing, 10/19/2009 12:49:07 PM
Steel shipments from metals service centers increased
slightly in September-by 8,200 tons in the U.S.
and about 40,000 in Canada-indicating
that end-market demand remains quite weak. Some analysts had expected a strong
post-Labor Day pickup in deliveries, which didn't occur.
The latest report from the Metals Service Center Institute shows September shipments were 2,557,300 tons in the U.S. and 455,100 tons in Canada for a total of 3,012,400 tons. That compares with August shipments of 2,549,100 tons in the U.S. and 415,500 tons in Canada for a total of 2,964,600 tons. Month-on-month, North American shipments increased 1.6%. Compared with last September, when shipments were 4,263,100 tons, North American activity dropped 29%.
The MSCI report also shows a 173,500-ton gain in inventories in the two countries to a total of 6,749,300 tons, which indicates that stocks remain relatively low even in the face of weak demand. A month ago, U.S. and Canadian stocks were 6,575,800 tons, or 2.6% fewer tons.
MSCI says in a statement that "the low inventory level is starting to show some restocking efforts, but this is clearly product-specific as it is tied to flat-rolled product." The association expects further restocking ahead, but adds it is unlikely to be very high-"as there is currently a better balancing of service center purchasing versus follow- through sales, and conservatism still exists" in the marketplace.
Service center operators polled by Platts agree demand remains weak, especially since the fourth quarter traditionally is the weakest buying time of the year, and automotive purchasing has cooled. Automakers were heavy buyers of sheet steel when the "cash for clunkers" program ended but weak sales in September has stalled some of the auto assembly rebound.
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