Economy

SMU's August At-a-Glance
Written by Brett Linton
September 2, 2020
Steel prices gained momentum in August as demand improved and the mills announced a new round of price increases. As of last week, Steel Market Update’s hot rolled price average had risen to $485 per ton, up $45 in just two weeks from the mid-month low, and has since topped the $500 mark. Scrap prices were flat to slightly down from July to August. SMU adjusted its Price Momentum Indicator from Neutral to Higher on Aug. 20.
SMU Buyers Sentiment Index readings further recovered, with Current Sentiment reaching +50 at the end of August. Future Sentiment ended the month at +47, while the three-month moving average reached +38.50 as of Aug. 21, the highest 3MMA seen in 20 weeks. Note that monthly sentiment readings in the chart below are averages for each month.
Key indicators of steel demand were mixed; the AIA Billings Index remained steady at 40.0, and private employment increased, albeit at a lesser rate compared to previous months. Construction spending increased in July but remained below May figures. The latest data on total steel imports showed a decline in June, while exports and apparent steel supply both increased.
See the chart below for other key metrics in the month of August:

Brett Linton
Read more from Brett LintonLatest in Economy

CRU: China hits back with retaliatory tariffs on US
Targets include coal, liquified natural gas, crude oil, and other commodities

ISM: Manufacturing expands in January for first time in years
Following more than two years of contraction, US manufacturing activity rebounded in January according to the Institute for Supply Management.

Tampa Steel Conference: Trade attorney says brace for turbulence
Steel and aluminum have been identified as high priorities for trade

Chicago Business Barometer rises in January
Despite the gain, the index remains below both the levels of November 2024 and the 2024 average.

CSPA asks Canadian government to work against potential tariffs
The Canadian Steel Producers Association (CSPA) has urged Canada to engage with the US administration to avoid the tariffs threatened by the Trump administration by Feb. 1. “The imposition of tariffs on Canadian goods will have an incredibly disruptive impact on our integrated North American supply chains and on our workers and their families,” François […]