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
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Beige Book finds growing economic, policy uncertainty
All districts reported "hesitancy and a cautious approach to business and household decisions,” according to the Beige Book.
ISM: Manufacturing continues to contract in May
May marks the third consecutive month US manufacturing activity declined, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Chicago PMI decreases 4.1 points in May
The Chicago Business Barometer reports that decreases in new orders, order backlogs, and softer production pulled the index down by 4.1-points to 40.5, in May.
Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.