EU service centres see October shipments fall on-year
European steel distributors’ association EUROMETAL tells Kallanish that European Union (EU) distribution sector shipments dipped again while inventories grew year-on-year for flat products in October. Shipments also saw a strong fall in the multi product and proximity distribution sector.
Flat steel service centres (SSC) saw EU shipments dip by -7% y-o-y in October following a -3% fall in September. Despite this, shipments over the first ten months of 2016 have risen by 1% on-year. Stock volumes within EU SSC, when expressed in days of sales, noted 67 days in October 2016, compared with 61 days in October 2015, EUROMETAL says.
EU Multi-Product & Proximity Stockholding distribution, mainly involving longs, tubular products and stainless steel, also registered a decrease in shipments in all main product lines, except for plates, the association adds.
October shipments in this sector dipped by -10% y-o-y but showed have remained flat y-o-y for the first ten months of 2016. Stocks within the EU Multi-Product & Proximity Steel Stockholding Distribution sector, expressed in days of sales, reached 75 days in October 2016, EUROMETAL continues. This compares with 69 days during the same month in 2015.
EU service center shipments fell in October
Shipments by flat steel service centers in the European Union fell 7% year-on-year in October and stock volumes are increasing as a result, according to the latest data released by EUROMETAL.
The federation of steel, tube and metals distribution noted that in the third quarter of the year, shipments were down 3 % y-o-y, a negative turn after the market’s positive start in the first half of the year.
The data adds more supports to distributors’ complaints that the raft of higher mill offer prices has not reflected the demand situation – although of late some service center and stockholder sources have confirmed they are finding it easier to increase their outsell prices as end-users accept the longevity of firmer steel markets.
The year would still appear to have been a solid one so far in terms of sales volumes, with service center shipments growing 1% y-o-y in the first ten months of 2016 and in recent months at much higher sales prices.
Stock volumes within EU service centers are higher than they were last year with inventories – expressed in days of sales – at 67 days in October 2016, compared with 61 days in October 2015.
Traditionally companies will look to run down their stock levels towards the end of the year, preferring to hold cash in hand rather than assets that could lose value. Observers say it will be interesting to note whether this year there will be a change as many expect the market to remain firm for much of the first quarter of 2017.
Peter Brennan, PLATTS