Economy
February 2018 at a Glance
Written by Brett Linton
March 1, 2018
There were no surprises in this month’s data as our SMU Price Momentum continued to reflect higher steel prices, and that expectation continues over the next 30 to 60 days. Our SMU Steel Buyers Sentiment Index is at, or very near, all-time highs for our index. Buyers and sellers of flat rolled steel are optimistic about their company’s ability to be successful in the current market situation, as well as three to six months into the future.
Prices rose over the past 28 days with benchmark hot rolled ending the month at $790 per ton. This is the highest average HRC price seen since May 2011 (which at the time was crashing from the all-time high of $1,070 per ton). Our index average at $751 per ton was $11 per ton higher than that of the CME HRC settlement price for the month, but $5 per ton lower than Platts.
MSCI service center inventories ended the month of January at 2.1 months of supply (flat rolled), while SMU’s new service center index of inventories (not shown below as only available to Premium members) had inventories at 2.8 months of supply.
Those are some of the highlights for the month of February. There is much more information provided in the table below.
To see a history of our monthly review tables, visit our website.
Brett Linton
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Consumer confidence falls for fourth consecutive month
People remain concerned about inflation, trade policies, and tariffs.
Housing starts ticked up in February
Single-family starts last month hit a rate of 1.10 million, a month-over-month increase of 11.4%, census data shows.
Architecture billings continued to slide in February
The ABI is a leading indicator for near-term nonresidential construction activity and projects business conditions ~9-12 months down the road (the typical lead time between architecture billings and construction spending).
New York state manufacturing activity tumbles in March
After a modest recovery in February, business activity in New York state’s manufacturing sector declined sharply in March, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.