US service center steel shipments drop again

US steel shipments from service centers fell in April, marking the sixth consecutive month of declines.

Steel shipments fell by 5pc year-over-year, according to the Metals Service Center Institute. The falling service center shipments come as US hot-rolled coil (HRC) prices have fallen to $635/st as of this week, down by 14pc from the beginning of the year.

Amid a weak HRC spot market, buying activity has been limited as service centers do not want to hold high-priced inventories as prices fall.

US aluminum service center shipments rose by 3pc from the same month in 2018, breaking a four-month decline.

Canadian steel shipments fell by 13pc from April 2018, continuing a nine-month decline, while aluminum shipments increased by 4.5pc.