ROLLING MEADOWS, Illinois, December 15, 2009 – Although November shipments of steel and aluminum from U.S. and Canadian metals service centers declined from October, there are signs that the market may be stabilizing, the Metals Activity Report from the Metals Service Center Institute shows.
U.S. steel shipments fell, but at only about half the rate when compared with shipments from November 2008. Canadian steel shipments were down just 4% from those of a year ago. Both rates of decline were substantially lower than in October. Aluminum shipments in the United States and Canada declined, but at only about two-thirds of the amount as last month’s rate of decline. In other words, metals shipments are declining more slowly than previously, which suggests a bottoming that goes beyond the normal seasonal shipment slowdown.
Steel Product Activity
November shipments of steel products from U.S. service centers totaled nearly 2.33 million tons, 14.1% below shipments in the same month last year. Shipments for the first 11 months of the year of 27.3 million tons are down 38.5% from those of a year ago. Month-end steel product inventories at U.S. metals service centers totaled 5.86 million tons, 1.2% lower than at the end of October and 35.9% lower than at this time in 2008. At current shipping rates, U.S. steel inventories represent a 2.5-month supply.
Steel shipments from Canadian metals service centers totaled 429,200 tons in November, just 4.4% lower than steel volume in November 2008. For the year-to-date, Canadian steel shipments total nearly 4.6 million tons, a decline of 27.8% from last year. Steel inventories finished November at 994,100 tons, a rise of 2.3% from October but 18.9% below year-ago inventories. At current shipping rates, Canadian steel inventories represented a 2.3-month supply.
Aluminum Product Activity
November aluminum shipments from U.S. metals service centers totaled 79,500 tons, off 19.1% from volume during November 2008. Year-to-date aluminum shipments of 958,400 tons are 39.8% below those of a year ago. Month-end aluminum inventories at U.S. metals centers totaled 255,900 tons 0.8% lower than at the end of October and 30.3% below year-ago stockpiles. At current shipping rates, that amount represents a 3.2-month supply.
Aluminum shipments from Canadian metals service centers totaled 10,600 tons, 16.3% lower than year-ago volume. For the year to date, shipments of 117,800 tons were 24.5% below shipments during the same period a year ago. Canadian aluminum inventories were unchanged at the end of November at 26,600 tons, 24% below year-ago stockpiles. At current shipping rates, that total represented a 2.5-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 375 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.
Contacts:
Chris Marti, vice president, research (847) 485-3009
cmarti@msci.org
Steve Weiner (503) 646-9108
sweiner@msci.org
