Steel inventories remain high

By Tom Stundza -- Purchasing, 12/20/2006 6:51:00 AM

North American steel service centers reported a 1% inventory decline for November to 16.6 million tons. Still, the data from the Metal Service Center Institute shows that steel inventories are 33% higher than at the end of November 2005. The November data marks the first monthly decline in steel inventories by U.S. service centers since November 2005. Still, “because metals service center shipments so closely parallel the broader manufacturing economy, the November results indicate a weaker undertone to metals-related economic activity,” according to MSCI. Steel shipments by service centers in November totaled 4.3 million tons, a 3.3% decline versus November 2005. At the present shipping rate, steel inventories represent a 3.8 months of supply. This is above the supply level of 3.6 months in October.