Are Service Centers ‘Comfortable’ With Their Inventories?

We are hearing reports from steel mills that their lead times have moved out and they have been able to collect some, if not most, of the $30 per ton price increase announced at the beginning of the month. Steel Market Update (SMU) is concerned as our research data is suggesting that service centers are “comfortable” with their inventories and that the purchases being made are only to accommodate slightly longer lead times.

During the week of June 5, SMU produced our early June flat rolled steel market analysis. We are in the process of conducting our mid-June analysis right now, and we will have details from that data in Thursday and Sunday issues of Steel Market Update.