Economy
SMU's July At-a-Glance
Written by Brett Linton
August 4, 2020
Steel prices declined throughout the month of July, although mills announced price increases in the third week of the month. As of last week, Steel Market Update’s hot rolled price average had declined to $450 per ton. Scrap prices declined from June to July by $18-48 per ton. SMU adjusted its Price Momentum Indicator from Lower to Neutral in mid-July.
SMU Buyers Sentiment Index readings declined from July, with Current Sentiment remaining in positive territory but slipping to +34 at the end of the month. Future Sentiment ended the month at +38, while the three-month moving average reached +31.83 as of July 24, the highest 3MMA seen in 16 weeks. Note that monthly sentiment readings in the chart below are averages for each month.
Key indicators of steel demand were mostly up compared to the downturn seen in the prior months. The AIA Billings Index rose to 40.0, and private employment increased by nearly 4,800 jobs. Construction spending slightly decreased in July to $1,355 billion dollars (SAAR).
See the chart below for other key metrics in the month of July:
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.”