Metal Shipment Growth Rate Slows in July 2010
08/18/2010 - The rate of growth of steel and aluminum shipments from metals service centers in the United States and Canada slowed in July, according to the latest Metals Activity Report from the Metals Service Center Institute. Inventories of both metals increased in both countries.
The rate of growth of steel and aluminum shipments from metals service centers in the United States and Canada slowed in July, according to the latest Metals Activity Report from the Metals Service Center Institute. Inventories of both metals, in terms of months of supply on hand, rose in both countries.
July shipments of steel products from U.S. metals service centers totaled about 2.87 million tons, an increase of 14.5% compared to year-ago shipments. This compares with year-over-year growth of 30.8% and 29.4% in June and May, respectively. Steel shipments for the first seven months of the year totaled nearly 20.5 million tons, or 18.4% above the same period in 2009.
U.S. steel inventories of 7.46 million tons at the end of July were 30.2% higher than a year ago. This volume equals a 2.6-month supply at current shipping rates—up from a 2.3-month supply at the end of June and 2.4 months at the end of May.
In Canada, shipments of steel from metals centers in July totaled 421,900 tons, an increase of 5.9% compared to July 2009. This compares with year-over-year growth of 28.6% in June and 23.3% in May. Shipments for the first seven months of the year were about 3.3 million tons, 15.2% higher than those of the same period last year.
Canadian steel inventories of about 1.3 million tons were 29.7% above those at the end of July 2009 and, at current shipping rates, equal to a 3.1-month supply. This compares with inventories equal to a 2.6-month supply at the end of June and 3.0 months at the end of May.
Shipments of aluminum products from U.S. metals service centers in July totaled 118,000 tons, or 31.6% more than in July 2009. June shipments were 37.7% above those of a year earlier. For the first seven months of the year, U.S. aluminum shipments totaled 733,800 tons, up 19.5% compared to the year-ago period. Inventories at the end of July of 317,900 tons were 19.3% higher than last July—equal to a 2.7-month supply at current shipping rates. This compares with a 2.5-month supply at the end of June.
In Canada, aluminum shipments of 9900 tons in July were 1.3% above those of a year ago; monthly shipments were up 12.2% in June and 11.6% in May compared to 2009. Year-to-date shipments of 78,500 tons were 4.8% above those of the same 2009 period. Canadian aluminum inventories at the end of July totaled 32,000 tons, a 4.7% increase over last year. At current shipping rates, that volume equals a 3.2-month supply, compared with a 2.4-month supply at the end of June.
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 360 members operating from about 1200 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.
