Service Centers
January 29, 2015
SMU Analysis of Service Center Inventories, Spot Steel Prices
Written by John Packard
As we listen to the domestic steel mills earnings conference calls, one of the items we focus on is their viewpoint regarding service center inventories. One year ago the domestic mills were touting the lack of inventory as being one of the drivers of orders which was keeping flat rolled steel prices high. That tune has recently changed although there does not seem to be a clear consensus of opinion at the steel mills.
With the historically high rates of foreign steel imports, coupled with no slowdown in domestic steel mill production rates, the result has been higher inventories at the domestic service centers based on Steel Market Update analysis.
