Economy

May at a Glance: Sentiment Sags
Written by Brett Linton
June 4, 2019
Steel Market Update’s Steel Buyers Sentiment Index dipped below the +50 mark and continued to erode last month as the uncertainty over tariffs and trade had a negative effect on buyers’ attitudes. With OEM and service center executives feeling less positive about their prospects for the next few months, as indicated by SMU Future Buyers Sentiment, it’s no wonder that steel price momentum remains on a downward trajectory. Buyers tell SMU they are reluctant to make purchasing decisions today when steel will be cheaper tomorrow. Buyers sentiment of +42, while still on the optimistic half of the scale, is down from a peak of +78 last year.
Steel prices declined by as much as $50 per ton during May, depending on the product. The benchmark price for hot rolled steel slid from around $640 per ton at the beginning of May to less than $600 by the end of the month. Cold rolled declined from $790 to $765, galvanized from $868 to $828 and plate from $940 to $890.
Weaker-than-expected demand for finished steel and ferrous scrap contributed to the declining steel prices in May.
To see a history of our monthly review tables, visit our website here.

Brett Linton
Read more from Brett LintonLatest in Economy

Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).

Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)

Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.

Beige Book shows concerns about trade policy
Manufacturing was mixed, but two-thirds of districts said activity was little changed or had declined.

New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey