Economy

SMU's September At-a-Glance
Written by David Schollaert
October 3, 2020
Steel prices continued their upward trajectory in September as demand rose further and mills announced more increases on hot rolled, cold rolled and galvanized products. Steel Market Update’s hot rolled price averaged $568 per ton in September, an increase of more than $100 month/month, and has since topped the $600 mark. Average prices for prime and obsolete scrap also rose in September, lending support to those higher finished steel prices.
SMU Buyers Sentiment Index readings rose further, keeping the upward momentum seen in August. Current and Future Sentiment were in the +56-58 range in September, an optimistic level considering the ongoing pandemic The three-month moving average reached +48.50 as of Sept. 30, an increase of 10.0 from August levels. Note that monthly sentiment readings in the chart below are averages for each month.
Key indicators of steel demand were once again mixed. The ISM Manufacturing Index indicated expansion with a reading well above 50. Construction spending increased for the third month in a row in August, though the AIA Billings Index, a predictor of future construction activity, remained flat at 40.0 month/month.
See the chart below for other key metrics in the month of September:

David Schollaert
Read more from David SchollaertLatest in Economy

Steel groups welcome passage of budget bill
Steel trade groups praised the passage of the Big Beautiful Bill (BBB) in Congress on Thursday.

Industry groups praise Senate for passing tax and budget bill
The Steel Manufacturers Association and the American Iron and Steel Institute applauded the tax provisions included in the Senate's tax and budget reconciliation bill.

Chicago PMI dips 0.1 points in June
The Chicago Purchasing Managers Index (PMI) slipped 0.1 points to 40.4 points, in June.

Multi-family pullback drives housing starts to 5-year low in May
US housing starts tumbled in May to a five-year low, according to figures recently released by the US Census Bureau.

Architecture firms still struggling, ABI data shows
Architecture firms reported a modest improvement in billings through May, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.