SMU Data and Models
April 19, 2017
SMU Service Center Apparent Inventories Deficit Balloons
Written by John Packard
The following service center inventories data is based on the assumption that the MSCI data as presented is accurate on carbon flat rolled.
From the MSCI data we apply a proprietary formula/model from which we can determine if flat rolled distributors are in an over-inventoried (excess) or under-inventories (deficit) situation. The importance of understanding the balance of inventories is important when looking at when distributors will need to begin buying heavily and what impact that could have on steel prices.
