Economy
SMU's May At-a-Glance
Written by Brett Linton
June 2, 2020
Steel prices inched upwards during the month of May following price increase announcements by the mills, with the SMU hot rolled index reaching $500 per ton last week. Scrap prices increased over April, as did zinc and aluminum prices.
SMU Buyers Sentiment Index readings increased over April, with Current Sentiment coming back into positive territory and reaching +29 at the end of the month. Future Sentiment rebounded from +25 to +44, while the three-month moving average ended the month at +6.67 as of last Friday.
The SMU Price Momentum Indicator remained at Neutral for the entire month, after moving from Lower on April 30.
Key indicators of steel demand were mixed, but with more data points reflecting the downturn compared to last month. The AIA Billings Index fell from 33.3 to 29.5, and private employment shrunk by nearly 20 million jobs. (Note, figures in the chart are monthly averages.)
See the chart below for other key metrics in the month of May:
Brett Linton
Read more from Brett LintonLatest in Economy
US construction spending drops again in August
Construction spending in the US declined for a third month in August but showed an increase year over year (y/y). The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending […]
ISM: Manufacturing contracts again in September
US manufacturing activity contracted for the sixth consecutive month in September, according to the latest report from the Institute for Supply Management (ISM). The index has indicated a contracting industrial sector for 22 of the past 23 months.
Chicago Business Barometer remains gloomy in September
The Chicago Business Barometer increased marginally in September but continues to indicate deteriorating business conditions.
Consumer confidence sours in September
The Conference Board reported that consumer confidence in the US dropped to one of the lowest readings of the year in September. With concerns mounting about business conditions and the labor market, the tumble was the biggest monthly decline since August 2021.
September energy market update
In this Premium analysis we cover oil and natural gas prices, drilling rig activity, and crude oil stock levels in North America. Energy prices and rig counts are advance indicators of demand for oil country tubular goods (OCTG), line pipe, and other steel products.