Economy
July at a Glance: Prices Up
Written by Brett Linton
August 1, 2019
The long-awaited rebound in steel prices was the biggest story of the month in July. Steel Market Update’s Price Momentum Indicator was pointing firmly upward by the end of the month following three $40 price increase announcements by flat rolled steel producers. The benchmark price of hot rolled steel hit $580 per ton in July, up more than 10 percent from the beginning of the month. Cold rolled and galvanized saw similar increases. The market for plate steel remains under pressure, however, with the average price declining to $770 per ton during the month.
The upturn in prices has had a similar effect on industry optimism. Both SMU’s Current and Future Steel Buyers Sentiment Indexes saw notable increases during the month, though at +49 and +57, respectively, they remain well below the peaks of last year.
The price of ferrous scrap trended downward in the three months through July, but is predicted to increase in August, lending support to higher finished steel prices.
See the chart below for a snapshot of other supply/demand indicators in July.
To see a history of our monthly review tables, visit our website here.
Brett Linton
Read more from Brett LintonLatest in Economy
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
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.