SMU Data and Models
February 21, 2017
SMU Apparent Excess/Deficit Model Has January Inventories in Deficit
Written by John Packard
Late last week the MSCI released their service center shipment and inventories data. Steel Market Update (SMU) provides detailed articles to both our Executive and Premium members about the MSCI data. One of the special articles we do for Premium only customers is our Service Center Flat Rolled Inventories Apparent Excess/Deficit model.
This is a long-winded way of saying we put the data into our model and then pump out an opinion as to whether the domestic service centers have too much (Excess) or not enough (Deficit) sheet stock on their floors. Our model now has service center inventories in Apparent Deficit. This is critical to understand as deficits mean the distributors will need to buy more steel soon. Apparent Deficits are good for steel mills trying to raise steel prices.
