Steel Inventories Continue To Decline In May

U.S. steel inventories at metal service centers continued to decline in May as shipments remained weak, according to data from the U.S.-based Metal Service Center Institute. Shipment-to-inventory ratios were flat in the United States but rose modestly in Canada.

Steel Product Activity
Steel shipments from U.S. metals centers totaled 2.25 million tons in May, a reduction of 48.5% from May 2008 shipments. Steel shipments for the first five months of the year, at 12.3 million tons, are down 44.3% compared with last year’s period. U.S. steel inventories at metals service centers totaled 6.46 million tons at the end of May, 38.3% lower than year-ago inventories. At current shipping rates, those stocks represented a 2.9-month supply.

Canadian metals service centers shipped 375,500 tons of steel products during May, or 40.3% lower volume than a year ago. Year-to-date shipments in Canada total 2.06 million tons, down 35.6%. End-of-month stockpiles of 1.12 million tons of steel products were 30.3% lower than last year and, at current shipping rates, are equal to a 3.0-month supply.

Aluminum Product Activity
Shipments of aluminum products from U.S. metals service centers totaled 82,000 tons, 47.6% lower than in May 2008. Sales for the year-to-date of 434,900 tons of aluminum are down 44% from last year. U.S. aluminum inventories at the end of May of 282,300 tons were off 41.7% from a year ago and, at current shipping rates, represent a 3.4-month supply.

Canadian shipments of aluminum products by metals centers totaled 10,100 tons in May, 30.8% lower than a year ago. For the first five months of the year, Canadian aluminum shipments total 53,900 tons, down 26.4% from the same period a year ago. Aluminum inventories at the end of the month totaled 31,000 tons, off 14.6% from last year and, at current shipping rates, equal to a 3.1-month supply.

The Metals Service Center Institute has more than 400 members constituting the largest single group of metals purchasers in North America, amounting each year to more than 55 million tons of steel, aluminum, and other metals.

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