Economy

July End of the Month Data
Written by John Packard
July 31, 2014
At the end of each month Steel Market Update takes a look back at the data we have compiled and does a quick analysis for our readers. This is different than our SMU Key Market Indicators which is also included in this newsletter.
Benchmark hot rolled coil prices averaged $667 per ton (SMU) for the month of July. Prices actually rose $15 per ton on HRC during the month, as we started the month at $660 per ton and ended at $675 per ton.
CRU averaged $665 per ton for the month and Platts $675 per ton on hot rolled coil.
Our cold rolled average was $789 per ton, galvanized $841 per ton (.060″ G90) and Galvalume $1078 per ton (.0142″ AZ50, Grade 80).
We saw both zinc and aluminum spot prices on the LME trending higher.
Iron ore spot prices (China) also began moving back up after breaking below $90 per dry metric ton (62% Fe) in June. The average for July was $96/dmt.
Both MSCI and SMU service center months on hand (inventories) for flat rolled remained essentially unchanged with the MSCI reporting 2.1 months at the end of June (SMU was at 2.22 months at that time) and SMU averaging 2.27 months for the month of July.
Auto sales, ISM Manufacturing Index, AIA Billings Index and Auto Sales were all positive in July.
Foreign imports continue to be one area where growth is not considered to be a good thing. The last Final Census data available is for the month of May at just over 4 million tons. However, the Preliminary Census number for June suggests it will be 11 percent lower than May.

John Packard
Read more from John PackardLatest in Economy

US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.

Manufacturing in New York state improves again in August
Business activity in New York state improved modestly in August. It was just the second positive reading for the general business conditions index in six months.

President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.

Hot-rolled spot market conditions linger, prices slip
Market participants said they have high hopes that the stable hot-rolled spot market will improve as the year rolls on.

Dodge Momentum Index surges in July
The Dodge Momentum Index (DMI) jumped 20.8% in July and is now up 27% year-to-date, according to the latest data released by Dodge Construction Network.