MSCI: Growth Slows in Service Center Shipments

Service center shipments increased from year-ago levels, though growth rates continued to slow from earlier in 2011, according to the July Metals Activity Report from the Metals Service Center Institute, Rolling Meadows, Ill.

U.S. service centers shipped 3.1 million tons of steel products in July, which represents an increase of 8.9 percent from July 2010. For the year to date, steel shipments totaled 24.0 million tons, an increase of 17.2 percent from the same period in 2010. Steel product inventories were 8.4 million tons at the end of July, an increase of 12.8 percent over July 2010 and an increase of 6.0 percent from the previous month. At the current shipping rate, this represents 2.7 months of supply in inventory, an increase of 3.6 percent from a year ago.

Service centers shipped 117,500 tons of aluminum products in July, a decrease of 0.5 percent from the same month in 2010. For the year to date, aluminum shipments totaled 881,000 tons, an increase of 20.1 percent from the same period in 2010. Inventories of aluminum products were 354,200 tons at the end of July, an increase of 11.4 percent over July a year ago and an increase of 0.8 percent from the previous month. At the current shipping rate, this represents 3.0 months of supply in inventory, an increase of 11.9 percent from a year ago.

Canadian service centers shipped 468,600 tons of steel products in July, an increase of 11.1 percent from July 2010. For the year to date, steel shipments totaled 3.7 million tons, an increase of 12.4 percent from the same period in 2010. Steel product inventories were 1.6 million tons at the end of July, an increase of 25.0 percent from July a year ago and an increase of 3.9 percent from the previous month. At the current shipping rate, this represents 3.5 months of supply in inventory, an increase of 12.5 percent from a year ago.

Canadian service centers also shipped 10,700 tons of aluminum in July, an increase of 9.0 percent from the same month in 2010. For the year to date, aluminum shipments were 85,300 tons, an increase of 8.7 percent from the same period in 2010. Inventories of aluminum products were 33,000 tons at the end of July, an increase of 3.0 percent from July a year ago and an increase of 2.9 percent from the previous month. At the current shipping rate, this represents 3.1 months of supply in inventory, a decrease of 5.5 percent from a year ago.