U.S. Service Center Shipments:  On a three month moving average, (3MMA) basis, October total carbon steel shipments averaged 137,100 tons per day, compared to 150,400 tons per day in May 2018 (-8.9 % year on year, YoY). Overall carbon steel inventory is down 15.4% YoY.

Figure 1 shows percentage change results for shipments, daily intake and inventory level. In all cases the percentage change references 3MMA y/y. For shipments and inventory, three columns of data are listed offering 12, 24 and 36 month changes.

All product groups posted a decrease in daily intake YoY (3MMA).  All carbon products reported a decrease of 10.1%. Structurals, (> or = 3 inch) 3MMA y/y intake decreased by 4.2% y/y. Bar and Shapes y/y intake fell 19.7%. Plate recorded a decline of 19.4% y/y. Carbon Pipe & Tube  3MMA y/y intake decreased by 10% y/y.

Service Center shipments were also down across the board. All carbon products reported a decrease of 8.0%. Structurals, (> or = 3 inch) 3MMA y/y shipments decreased by 4% y/y. Bar and Shapes y/y shipments fell 17.9%. Plate recorded a decline of 13.8% y/y. Carbon Pipe & Tube  3MMA y/y shipments decreased by % y/y.

Overall inventory levels decreased in all product lines. All carbon products decreased inventory by 6.0% y/y, Bar and shapes inventory was down slightly at 12.7% y/y, Carbon pipe and tube was down 13.6% y/y and Carbon sheet declined by 6.0%. Structurals was down 8.5% y/y, Carbon Plate dropped 13.2% y/y.

At Gerdau we scrutinize the MSCI release every month searching for clues on the industry’s performance. It’s important to us as a significant supplier of long steel products to our service center customers. It’s equally important to keep our steel consuming consumers informed.