Steel shipments from service centers rise 1.1%
Steel inventories in October increase 2.2%
Tom Stundza -- Purchasing, 11/17/2009 11:35:16 AM
Shipments of steel products from metals service centers in the U.S. and Canada increased by 1.1% in October to 3.47 million tons from 3.12 million in September but the 10-month shipments at 29.16 million tons still are a steep 38.8% lower for the 47.62 million in 2008. The growth in shipments in the latest the Metals Activity Report from the Metals Service Center Institute is far below industry expectations but meshes with buyers' plans, which have been in no-growth territory since September.
Inventories of 6.9 million tons in October is 2.2% more than the 6.75 million tons in September but the U.S. and Canadian stockpile is 48.5% below the 11.38 million tons in the year-ago month.
Analysts point out that U.S. restocking primarily occurred in flat-rolled products while other product categories saw destocking. Analyst David Lipschitz at Calyon Securities looks for U.S. service centers to continue restocking into November as imports and production continue to increase while demand is flat-to-down.
Total steel inventories, measured in months of supply at U.S. service centers, were at 2.3 months in October, flat from September but down from 2.8 months in the year-ago month. The 2.3 months' of supply is below the 10-year average for October of 2.6 months.
Lipschitz' analysis of MSCI data shows that sheet and strip product inventories were up to 2.0 months of shipments in October, as compared with 1.9 months in September, but down from 2.7 months during the year-ago period. In the carbon steel bar sector, product inventories were down to 2.8 months of supply in October compared to the prior month of 3.1, but in-line with the year-ago month.
Plate inventories were flat at 2.9 months in October compared with the previous month, but down from year-ago period of 3.0 months. Similarly, U.S. stainless steel months of supply was flat at 2.6 months, but down from 2.8 months in the year-ago month.
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