Metal Center Inventories Continue to Decline in May
06/17/2009 - Metals service center inventories of steel and aluminum products continued to decline through May across both the U.S. and Canada, while shipments remained weak, according to the most recent Metals Activity Report from MSCI.
Metals service center inventories of steel and aluminum products continued to decline through May across both the United States and Canada, while shipments remained weak, according to the most recent Metals Activity Report from the Metals Service Center Institute. During May, shipment-to-inventory ratios remained flat in the United States, but rose modestly in Canada.
According to the report, steel shipments from U.S. metals centers totaled 2.25 million tons in May, a 48.5% reduction from year-earlier shipments. Through the first five months of 2009, steel shipments reached 12.3 million tons, a 44.3% decrease compared with the first five months of 2008. By the end of May, steel inventories at U.S. metals service centers totaled 6.46 million tons, 38.3% lower than year-ago inventories. At current shipping rates, those stocks represented a 2.9-month supply.
In Canada, steel shipments from metals service centers totaled 375,500 tons during May, reflecting a 40.3% decrease vs. the year-ago volume. Through the first five months of 2009, steel shipments reached 2.06 million tons, down 35.6% vs. the comparable year-ago period. End-of-month stockpiles of 1.12 million tons of steel products were 30.3% lower than last year. At current shipping rates, this volume is equal to a 3.0-month supply.
Aluminum product shipments from U.S. metals service centers totaled 82,000 tons in May, 47.6% lower than in May 2008. Year-to-date aluminum sales, at 434,900 tons, are down 44% from last year. Aluminum inventories at the end of May of 282,300 tons were off 41.7% from a year ago; at current shipping rates, this volume represents a 3.4-month supply.
In Canada, metals center shipments of aluminum products totaled 10,100 tons in May, 30.8% lower than in May 2008.Year-to-date aluminum shipments from Canadian centers total 53,900 tons, reflecting a 26.4% decrease from the comparable year-ago period. By the end of May, aluminum inventories totaled 31,000 tons, off 14.6% from last year; at current shipping rates, this volume is equal to a 3.1-month supply.
The Metals Activity Report (MAR), based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third-party econometrics and strategy firm, McCoy, Scott & Co.
Founded in 1909, the Metals Service Center Institute has more than 400 members operating from about 1,200 locations in the U.S., Canada, Mexico, and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 55 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers. MSCI’s membership also includes almost all ferrous and non-ferrous industrial metals producers in North America. Metals service centers inventory and distribute metals and provide first-stage fabrication services.
