So, for the time being at least, imports are a necessity if service centers are to do their job of meeting the material requirements of our customers. By the same token, imports in excess of current requirements have had a depressing effect on the market for months afterwards. That is precisely the situation we face today. Orders for imports turned down months ago, but actual arrivals did not slow down until the pipeline was cleared. Normally, imports from off-shore will take as long as five months from order to customs clearance.
Inventories are too high by any measure.
We have been attempting to whittle down the inventories to bring them into line with shipping rates. While this is a normal and necessary part of the business cycle, the process of adjustment unfortunately is far from complete. Of all American steel groups, service centers are the closest to market conditions. To be successful a service center must not only respond rapidly to changes in market conditions, it must anticipate them. Recognizing our members' thirst for timely market data, SSCI surveys our members monthly on market conditions, as well as their perceptions on where the market is headed.