U.S. Service Center Shipments:  On a three month moving average, (3MMA) basis, January total carbon steel shipments averaged 149,600 tons per day, compared to 146,100 tons per day in January 2019 (0.2% year on year, YoY). Overall carbon steel inventory is down 8.1% 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 increase of 3.7%. Structurals, (> or = 3 inch) 3MMA y/y intake decreased by 2.6% y/y. Bar and Shapes y/y intake fell 12.3%. Plate recorded a decline of 16.3% y/y. Carbon Pipe & Tube 3MMA y/y intake increased by 8.0% y/y.

Service Center shipments were also down across the board. All carbon products reported a decrease of 2.5%. Structurals, (> or = 3 inch) 3MMA y/y shipments decreased by 1.1% y/y. Bar and Shapes y/y shipments fell 15.3%. Plate recorded a decline of 15.3% y/y. Carbon Pipe & Tube 3MMA y/y shipments decreased by 7.7% y/y.

Overall inventory levels decreased in all product lines y/y except Structurals, (> or = 3 inch) at 6.6% y/y. All carbon products decreased inventory by 14.0% y/y, Carbon Plate decreased 19.3% y/y, Bar and shapes inventory was down slightly at 21.6% y/y, Carbon pipe and tube was down 9.6% y/y and Carbon sheet declined by 13.5%.

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.