Buyers sourced an estimated 11-12% fewer tons from steel service centers last year than in 2000, based on 11-month data available from the Steel Service Center Institute (SSCI) in Chicago. The data shows that monthly shipments started 2000 at 2.5 million tons in January but trended down to 1.9 million tons by November. Through November, buyers purchased 24.1 million tons from service centers, compared to 11-month buys totaling 27.7 million tons in 2000.

A more positive trend for the service center industry is a decline in month-ending inventories to about 7.6 million tons at the end of November from 8.7 million at the end of November 2000. However, analyst Michelle Applebaum at Salomon Smith Barney's Chicago office suggests the 3.8 months worth of shipments on hand at service centers is still considered a high level for the industry. Service centers purchased substantially fewer tons in November from mills than in previous months.

By comparing monthly changes in shipments and monthly change in inventories, analyst Charles Bradford at Bradford Research in New York calculates that service centers purchased only 1.7 million tons from the mills in November—compared to 2.3 million a month earlier. A year-ago in November, the service centers purchased 2.4 million tons from the mills.