Economy
November at a Glance
Written by John Packard
November 29, 2014
Steel Market Update (SMU) benchmark hot rolled coil pricing averaged $634 per ton ($31.70/cwt) for the month of November. CRU HRC averaged $635 per ton ($31.75/cwt) while Platts averaged $640 per ton ($32.00/cwt).
Hot rolled prices at $630 per ton as of the last week of the month, were $5 per ton lower than where they were when the market started and $10 per ton lower than the prior month’s average.
Key commodities that affect steel prices and/or mill profits have been steadily dropping over the past couple of months. Shredded and #1 busheling scrap prices are down $50 as of the end of November compared to where they were at the end of September. SMU forecast for scrap is for prices to trend sideways to down $10 per gross ton during the month of December.
Spot iron ore dropped to its lowest level in at least 5 years with 62% Fe fines trading at $69.20 per dry metric ton as the month came to a close.
SMU Steel Buyers Sentiment Index 3 month-moving-average (3MMA) dropped for the third consecutive month.
Based on the SMU proprietary model, we see service center flat rolled inventories as being +399,000 tons in over supply (apparent excess). This is one of our Premium level products for those who want more depth and forecasting from SMU. If you are interested in learning more about Premium level membership please contact our office: info@SteelMarketUpdate.com or by phone: 800-432-3475.
John Packard
Read more from John PackardLatest in Economy
Architecture firm billings ease further in December
Architecture firms reported a sharp reduction in billings in December, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.
Fed indicators show continued stability in manufacturing
Recent Federal Reserve data indicates that the US manufacturing sector remains healthy and stable. The strength of the manufacturing economy has a direct relationship to the health of the steel industry.
January energy market update
In this Premium analysis we cover North American oil and natural gas prices, drilling rig activity, and crude oil stock levels. Trends in energy prices and active rig counts are leading demand indicators for oil country tubular goods (OCTG), line pipe and other steel products.
New York state manufacturing fell in January
“Price increases, while subdued, picked up,” Richard Deitz, Economic Research Advisor at the New York Fed. “Firms grew more optimistic that conditions would improve in the months ahead.”
Beige Book shows mixed economic trends, manufacturing challenges, tariff concerns
Economic activity across the US experienced slight to moderate growth at the end of 2024, while manufacturing activity showed a slight decline