Economy

January at a Glance
Written by John Packard
February 1, 2014
During the month of January Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. Benchmark hot rolled prices averaged $673 per ton ($33.65/cwt) according to the Steel Market Update index. CRU posted their monthly average at $676 per ton ($33.80/cwt).
You can find the balance of our weekly and monthly averages on cold rolled, galvanized, Galvalume as well as #1 HMS, Shredded and #1 Busheling scrap in the table below.
Zinc prices retreated during the last week of the month to $.8984 per pound (zinc is used to make galvanized and Galvalume steels). Aluminum prices also dropped during the last week of the month to $.7645 per pound (aluminum is used to produce Galvalume, aluminized, Galfan, etc.).
Iron ore spot prices (TSI) out of China dropped from $132.4/dmt to $123.4/dmt during the course of the month. China is now closed for their New Year Holiday.
Both the HRC and BUS Futures forward curve are in backwardation meaning the current prices are higher than the futures values associated with each product.

John Packard
Read more from John PackardLatest in Economy

ISM: Manufacturing growth slows in July, hits 10-month low
US manufacturing activity slowed again in July to a 10-month low

CRU: Pushing EU imports back to 15% would be a big task
Several EU member states have published a ‘non-paper’ that puts forward proposals for a post-safeguard trade measure.

SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.

Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.

Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”