North American shipments and inventories down in Feb

The Metals Service Center Institute (MSCI) reported this week that in February 2007, North American steel shipments continued their seven-month long year-over-year decline. Meanwhile, inventories, which peaked last fall in the US and Canada, were also in decline. Based on its Metals Activity Report, MSCI expects that steel inventory liquidation, which began four to five months ago, will continue into the second quarter. The report shows that in February 2007, steel shipments from US service centers fell 6.7 percent when compared to the same month of the previous year, while Canadian service center shipments were down 5.1 percent when compared to the previous year. February marks the seventh consecutive month of year-over-year shipment declines. Year-to-date, US shipments were down 4.5 percent, while Canadian shipments were down 4.8 percent from the previous year. US and Canadian steel inventories, though above February 2006 levels, were down slightly from their peak in February 2007. US inventories totaled 15.8 million tons at the end of February, compared to 16.8 million tons at the end of October 2006, when inventory levels peaked. However, the February 2007 inventories were 18.2 percent higher than they were at the same time last year. At current shipping rates, inventories were equal to a 3.7-month supply, higher than the 2.9-month supply in February 2006, and slightly higher than in January 2006. Canadian steel inventories were at 1.24 million tons at the end of February, 20.1 percent higher than a year ago, but down slightly from the end of January this year. At current shipping rates, this represents a 4.0-month supply, compared to a 3.2-month supply on hand at the end of February 2006, and slightly more than at the end of January. MSCI has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico, and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America.