Service Centers
Service Center Flat Rolled Inventories Beginning to Expand
Written by Brett Linton
November 26, 2013
After compiling the results from our most recent Steel Market Update survey, we found service center inventories have risen to an average of 2.21 months for mid-November, the highest figure since mid-July of this year.
This is an improvement compared to the early-November survey, when inventories were measured at 2.04 months, the lowest figure since mid-October 2011. One year ago SMU analysis of service centers had inventories at 2.31 months. Current inventory levels are growing but are still 4.3 percent below 2012 levels.
The 3 month moving average (3MMA) for service center inventories is currently at 2.15 months, up slightly from 2.14 months 2 weeks ago.
In comparison to the MSCI service center inventory levels for flat rolled carbon products, the SMU inventory figures have been moderately higher for the past 5 months or so. The actual MSCI inventory level was 1.9 months for the end of October, and the seasonally adjusted level was 2.0 months. Here is a graphic comparing SMU and MSCI inventory data.
Brett Linton
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