Economy
SMU's April At-a-Glance
Written by Brett Linton
May 1, 2020
Both steel and scrap prices decreased in the month of April, down anywhere from $15 to $75 per ton between each product, as the effects of the coronavirus shutdowns impacted the market.
SMU Buyers Sentiment Index readings showed significant declines over March, with Current Sentiment sliding into negative territory and reaching a low of -8, Future Sentiment as low as +10, and the three-month moving average at +18.33 as of Friday.
SMU moved its Price Momentum Indicator to Neutral from Lower as the market showed signs of firming and the mills announced price increases on flat rolled products.
Key indicators of steel demand were mixed, with only some of our data points reflecting the downturn. The AIA Billings Index fell to 33.3, and private employment shrunk by 713,000 jobs.
See the chart below for other key metrics in the month of April:
Brett Linton
Read more from Brett LintonLatest in Economy
ISM: Manufacturing growth slows in July, hits 10-month low
US manufacturing activity slowed again in July to a 10-month low
CRU: Pushing EU imports back to 15% would be a big task
Several EU member states have published a ‘non-paper’ that puts forward proposals for a post-safeguard trade measure.
SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.
Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.
Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”