Economy
July 2018 at a Glance: Numbers Remain Positive
Written by Tim Triplett
July 31, 2018
July saw rising steel prices leveling out, prompting Steel Market Update to move its Price Momentum Indicator to Neutral. The price of hot rolled averaged around $910 and cold rolled around $1,000 a ton for the month. With prices for scrap seeing only modest changes from week to week, it’s difficult to predict what steel prices will do in August.
Sentiment among steel buyers remains at fairly high levels, in the mid 60s on SMU’s indexes, despite all the uncertainty on the trade front. The market is just starting to feel the effects of the Trump administration tariffs, and retaliatory tariffs imposed by U.S. trading partners, so the coming quarter should be telling about the prospects for the steel market moving forward.
Steel stands to benefit from positive news on the economy as GDP for the second quarter topped 4 percent. Strong hiring is keeping unemployment at near-record low levels. U.S. manufacturing continues to grow as evidenced by a 60.2 reading in the Institute for Supply Management’s latest Manufacturing Index. Automotive leads the way as carmakers continue to sell vehicles at a pace well in excess of 16 million per year.
For more information on current conditions impacting the flat rolled steel market, refer to the table below.
To see a history of our monthly review tables, visit our website.
Tim Triplett
Read more from Tim TriplettLatest in Economy
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Final Thoughts
We all know the American news cycle moves pretty fast. Viral today, cached tomorrow. So it is with the US presidential election on Tuesday, Nov. 5. People have election fatigue. They've moved on to other things like planning holiday parties, debating Super Bowl hopefuls, or even starting to look forward to our Tampa Steel Conference in February.
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Architecture Billings Index remains dismal in September
Architecture firms continued to experience soft business conditions through September, according to the latest Architecture Billings Index (ABI) release by the American Institute of Architects (AIA) and Deltek.