Economy

SMU's June At-a-Glance
Written by Brett Linton
June 30, 2020
Steel prices rose in the beginning of June, following May price increase announcements by the mills, but began to decline in the middle of the month and reached $480 per ton as of this week. Scrap prices were flat to down over May, while zinc and aluminum prices increased in June.
SMU Buyers Sentiment Index readings increased over June, with Current Sentiment rising further into positive territory and reaching +39 at the end of the month. Future Sentiment ended the month at +45, while the three-month moving average reached +17.67 as of last Friday. Sentiment readings in the chart below are averages for the month.
The SMU Price Momentum Indicator remained at Neutral for most of June, moving to Lower on the last day of the month as flat rolled steel prices trended downward.
Key indicators of steel demand were up compared to the downturn seen in the prior month. The AIA Billings Index rose to 32.0, and private employment increased by nearly 3,100 jobs.
See the chart below for other key metrics in the month of June:

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.”