Flat Rolled Steel Inventories Up 18% YOY

Yesterday the Metal Service Center Institute (MSCI) released their inventory and shipment data. According to the latest data total steel inventories dropped by 0.40 percent from the previous month and stood at 9,312,500 tons as of the end of October. Although down from the prior month steel inventories were 15.5 percent higher than October 2013. Inventories continue to be well below the averages seen prior to the beginning of the Recession. In October 2007 inventories (all products) totaled 10,478,400 tons. The monthly average compiled over the past 27 years is 9,993,800 tons.

There were 23 shipping days in October 2014 and the U.S. service centers shipped a total of 3,911,300 net tons which was 6.8 percent higher than the prior month and 3.2 percent higher than October 2013 which also had 23 shipping days. The tons distributors shipped 170,100 tons per day and the months of supply on hand dropped from 2.6 month to 2.4 months (not seasonally adjusted).