Economy
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/63b46f1e9614c655caa7fc03ac211b27.jpg)
ISM Steel Buyers Expecting Higher Demand for Products
Written by Sandy Williams
July 8, 2015
Steel buyers in the ISM Steel Buyers Survey continue to be cautiously optimistic that general economic activity will improve over the next six months. In the June survey, 38.5 percent of buyers expect economic conditions to improve, up from 30.8 percent in the May survey. However, 61.5 percent expect unchanged conditions during the period, up from 53.8 percent in the previous survey. No one the latest survey suggested conditions would worsen.
The percentages improve when buyer were asked about the trend of sales and production in the steel industry for the next six months. The percentage of buyers expecting orders and production to be up nearly doubled from 23.1 in May to 53.8 in the June survey. The remaining 46.2 percent expect the trend to remain unchanged.
In the shorter term of 3 months, buyers were also more optimistic on the order trend, rising to 53.8 percent expecting improvement from just 30.8 percent in May. The remainder expected unchanged conditions.
Backlogs are expected to increase said 46.2 percent of buyers, indicating stronger demand.
Inventory levels decreased in June. When asked how many months tons on hand would cover current shipping levels, 30.8 percent said 0-1 month (same as May), 53.8 percent said 1-2 months, and 15.4 percent said 2-3 months. (In May, 30.8 percent reported 1-2 months, 23.1 percent said 2-3 months, and 15.4 percent said 3-4 months.) Tons on hand were perceived to be at similar levels as 12 months ago by 69.2 percent of respondents. The level of inventory was considered “right” by 76.9 percent. Most planned to maintain the levels for the next six months while 23.1 percent indicated reductions ahead.
When asked if their company plans to buy or build new manufacturing facilities in the next year, 46.2 percent said yes and 58.8 percent said no—the exact opposite of May. Hiring is expected to increase.
Dependence on offshore sources for the next six months has been reported as unchanged in the last two surveys. Foreign prices were perceived as below domestic prices by 46.2 percent (up from 30.8 percent in May). Foreign mills are seeking US business at about the same rate as three months ago but survey respondents indicate activity has become more aggressive. Nearly 85 percent of buyers perceived selling prices for their products as competitive.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction.png)
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/FedRes.png)
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/empire_state_1-scaled.jpg)
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.