The ongoing deterioration of the North American economy added to seasonal and cyclical weakness for metals demand and shipments in June, according to the latest metals activity report from the Metals Service Center Institute. The report shows that steel and aluminum shipments from metals service centers fell from year-ago levels in the U.S. and Canada.

Steel shipments from U.S. metals service centers totaled 4.2 million tons in June, down 4.3% from shipments during June 2007. First-half 2008 steel-product shipments totaled nearly 26.3 million tons, off 3.8% from the year-ago midyear total. In Canada, steel product shipments from metals service centers totaled 293,000 tons in June, down 6% from June 2007, and first-half shipments of almost 1.9 million tons were down 2.7% from a year ago.

An analysis by Michelle Applebaum Research in Chicago says "the dichotomy in product lines was still evident, as surging demand for energy, infrastructure and heavy equipment products led to year-over-year increases in shipments of plate and structurals while flat-rolled shipments posted a 6% drop due to weak consumer durables markets."

North American steel inventories at nearly 12.9 million tons at the end of June were down 7.3% from last year, but up 2.7% from May. At current depressed shipping rates, they equaled 3.1 months of supply. U.S. stocks were reported at 11.8 million tons or 3 months of supply. Canadian service center steel inventories of 1.06 million tons were down 12.1% from a year ago, but at current shipping rates were at 3.6-month supply.