The latest statistics from the Washington, DC-based American Iron and Steel Institute reinforce what's still being heard in the steel marketplace in the US – demand remains buoyant in most market segments. The AISI reported late Friday that steel mills in the US shipped 9,591,000 st for the month of August 2006, a 7.4% increase from the 8,933,000 st shipped in August 2005, and a 6.4 percent increase from the 9,016,000 net tons shipped in the previous month, July 2006.

A year-to-year comparison of shipments of carbon, alloy and stainless steel, which totaled 75.1 million st through August, shows the following changes within major steel market categories: service centers and distributors, up 7.3%; automotive, up 15.7%; construction and contractors' products, up 13.7%; oil and gas, up 10.2%; machinery, industrial equipment and tools, up 9.2%; appliances, utensils and cutlery, down 3.4%; containers, packaging and shipping materials, up 5.1%; and electrical equipment, up 22%.

Although some steel product prices have come under pressure of late, most industry participants agree that this is due to mainly to an oversupply/excess inventory situation in the steel supply chain, rather than a weakening in demand.