Economy

January 2018 at a Glance

Written by Brett Linton

February 1, 2018

Industry data through the end January, including drivers of steel prices, supply and demand, are all pointing up as the year got off to a strong start. As the month ended, the Steel Market Update (SMU) Price Momentum indicator was pointing to higher flat rolled steel prices over the next 30 to 60 days as the domestic steel mills continue to raise prices.

Our SMU Steel Buyers Sentiment Index jumped during the month of January and reached an all-time high at +78. Future Sentiment also rose to an all-time high of +77. Based on a three-month moving average, our Buyers Sentiment Index ended the month at +71.33.

Benchmark hot rolled ended the month at $715 per ton and for the entire month averaged $685 per ton. Our average was slightly higher than the CME HRC Futures settlement price, which was $677 per ton. We were slightly lower than Platts, which averaged $687 for the month of December.

Zinc and aluminum spot prices on the LME continue to trade at historically high levels (over the past five years).

Many of the data items shown below are optimistic and represent a good start to 2018.

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

Read more from Brett Linton

Latest in Economy

CRU: Dollar and bond yields rise, metal prices fall as Trump wins election

Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.