Market Data
End of the Month: August 2018
Written by John Packard
September 4, 2018
August saw our SMU Price Momentum Indicator move from Neutral to Lower indicating our expectation that we will see prices drop over the next 30-60 days. The last couple of weeks of August and into early September has seen prices dropping and the trend does not appear ready to abate quite yet.
Our Sentiment Index has been moving lower as buyers and sellers of steel fret about steel prices, Section 232, Section 301 and the political environment. This is something we need to pay attention to as Sentiment is a leading indicator.
As mentioned about, steel prices on all but plate have slipped.
Scrap prices have also moved lower and are forecast to move lower again in September.
Zinc prices have been steadily moving lower forcing the steel mills to adjust their coating extras as the month came to a close (and into September with SDI making their announcement earlier today).
Please review some of the main items we watch on a monthly basis.
John Packard
Read more from John PackardLatest in Market Data
Final Thoughts
Most steel buyers think that steel prices will continue to rise into the 2026. But they don’t see the kinds of big gains that have characterized past market upturns, according to the results of SMU’s latest steel market survey.
Chicago Business Barometer improves but still contracts in October
The Chicago Business Barometer’s October reading still indicates a cooling in general business activity despite posting a surprise gain.
Drilling activity slows at October’s end in US and Canada
The latest Baker Hughes rig count report showed oil and gas drilling slowing in both the US and Canada last week.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
SMU Steel Demand Index improves but remains in contraction
SMU’s Steel Demand Index remains in contraction, according to late October indicators. Though growth faded at a slower pace, it rebounded from one of the lowest readings year-to-date from earlier in the month.