SMU Data and Models

SMU's May at a glance

Written by David Schollaert

June 13, 2024

SMU’s monthly at-a-glance articles summarize important steel market metrics for the prior month. This May report contains data updated through June 7.

Steel prices for sheet and plate products continued to edge lower throughout May. The SMU Price Momentum Indicator was adjusted from neutral to lower at the beginning of the month.

We saw a decline in Steel Buyers’ Sentiment, with the index falling to its lowest reading since August 2020. Steel mill lead times continued to hover right around five weeks throughout May, while the percentage of buyers reporting that mills were willing to talk price increased to 82% on average last month.

Raw materials prices were largely flat at the beginning of the month before eroding toward the month’s end. Scrap prices were down from April to May, except for busheling, which was flat. Zinc and aluminum prices strengthened throughout the month.

We also saw a mixed bag of economic indicators. Employment figures rebounded after a poor showing in April. While edging up, the AIA Billings Index remained in contraction territory. Construction spending flattened out but has been strong historically overall. Steel trade has increased, with imports and exports both near multi-month highs.

See the chart below for other key metrics for May. Note our new ‘trend’ column showing mini-graphs for each item (click here to expand).

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

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