After hitting its highest year-to-date level in July, US service centers' inventory-to-shipment ratio fell to 2.3 months of supply in August as overall steel shipments saw their first positive year-on-year growth in 2016, according to Metals Service Center Institute data released Friday.
At the end of August, US service centers had 7.85 million st of steel in stock, roughly flat from July inventory levels. Based on current shipment levels, the inventories at the end of August represented 2.3 months of supply, down from 2.7 months of supply in July and from 2.8 months during the same period last year.
Inventories at the end of August were 14.5% lower year on year, while shipments were up 2.1%. Service centers shipped 3.38 million st of steel in August, up from 2.29 million st in July. Shipments in the first eight months of 2016 were down 5.4% year on year.
Flat-rolled steel inventories rose to 5 million st in August from 4.98 million st in July. Based on current shipments, MSCI calculated that service centers carried 2.2 months of supply in August, versus 2.5 months of supply in July. August's ratio was down from 2.7 months in August 2015. Flat-roll shipments rose to 2.3 million st in August from 2 million st in July. Shipments were up 5.5% year on year.
Plate inventories at the end of August fell to 830,100 st from 857,600 st at the close of July. August inventories represented 2.8 months of supply, down from 3.5 months in July. Plate inventories were down 21% year on year in July.
Plate shipments rose to 296,300 st in August from 246,400 st in July, but were down 8.9% year on year. Year-to-date shipments are down 22.5%.
Pipe and tube inventories shrank to 501,000 st in August from 510,300 st in July. This represented 2.5 months of supply, while July's tons on hand represented 2.9 months of supply. Pipe and tube shipments increased to 198,300 st from 173,300 st in July and were down 10.5% year on year.
Inventories of structural steel were up month on month at 548,300 st in August, which compares with 535,400 st in July. Supply on hand in August was 2.6 months, down from 3 months in July. Shipments in August totaled 210,800 st, up from 178,000 st.
Bar product inventories fell to 504,200 st in August from 522,000 st in July. This represented 2.4 months of supply in August, which was down from 2.9 months in July.
Shipments of bar products climbed to 206,800 st in August from 179,300 st in July. Service center shipments of bar products were down 18.3% year on year.
Stainless steel inventories held relatively firm at 448,200 st in August, down only slightly from 448,600 st in July. The end-of-August inventory represented 2.7 months of supply, down from 3.1 months of supply in July. Stainless steel shipments increased to 165,900 st in August from 142,500 st in July.
Canadian steel warehouses carried 1.15 million st of steel at the end of August, down 18% year on year. Canadian service center shipments of steel rose to 364,800 st from 318,700 st in July and were down 6.1% year on year.
