Economy
November at a Glance
Written by John Packard
November 29, 2014
Steel Market Update (SMU) benchmark hot rolled coil pricing averaged $634 per ton ($31.70/cwt) for the month of November. CRU HRC averaged $635 per ton ($31.75/cwt) while Platts averaged $640 per ton ($32.00/cwt).
Hot rolled prices at $630 per ton as of the last week of the month, were $5 per ton lower than where they were when the market started and $10 per ton lower than the prior month’s average.
Key commodities that affect steel prices and/or mill profits have been steadily dropping over the past couple of months. Shredded and #1 busheling scrap prices are down $50 as of the end of November compared to where they were at the end of September. SMU forecast for scrap is for prices to trend sideways to down $10 per gross ton during the month of December.
Spot iron ore dropped to its lowest level in at least 5 years with 62% Fe fines trading at $69.20 per dry metric ton as the month came to a close.
SMU Steel Buyers Sentiment Index 3 month-moving-average (3MMA) dropped for the third consecutive month.
Based on the SMU proprietary model, we see service center flat rolled inventories as being +399,000 tons in over supply (apparent excess). This is one of our Premium level products for those who want more depth and forecasting from SMU. If you are interested in learning more about Premium level membership please contact our office: info@SteelMarketUpdate.com or by phone: 800-432-3475.
John Packard
Read more from John PackardLatest in Economy
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.
Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.
Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.
AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.