Economy
SMU's October At-a-Glance
Written by Brett Linton
November 3, 2020
Steel prices continued to climb in October as demand rose further on hot rolled, cold rolled and galvanized products. Steel Market Update’s hot rolled price index averaged $665 per ton in October, up nearly $100 over the previous month and up over $200 compared to August. The SMU Pricing Momentum Indicator remained at Higher, indicating prices are expected to rise over the next 30 days. Prices for prime and obsolete scrap were relatively steady compared to the month prior.
The SMU Buyers Sentiment Index peaked at +68 in mid-October, keeping the upward momentum seen in August and September. Both Current and Future Sentiment remained optimistic considering the ongoing pandemic; the three-month moving average reached +56.33 as of Oct. 30, steady over September levels and up significantly compared to August.
Key indicators of steel demand were overall positive. The ISM Manufacturing Index indicated further expansion, now at 59.3. Construction spending remained steady from August to September, though the AIA Billings Index, a predictor of future construction activity, jumped from 40.0 to 47.0. Private employment growth slowed to 877,000 in September, down from the previous two months.
See the chart below for other key metrics in the month of October:
Brett Linton
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