Economy
End of the Month: August 2018
Written by John Packard
September 4, 2018
August saw our SMU Price Momentum Indicator move from Neutral to Lower indicating our expectation that we will see prices drop over the next 30-60 days. The last couple of weeks of August and into early September has seen prices dropping and the trend does not appear ready to abate quite yet.
Our Sentiment Index has been moving lower as buyers and sellers of steel fret about steel prices, Section 232, Section 301 and the political environment. This is something we need to pay attention to as Sentiment is a leading indicator.
As mentioned about, steel prices on all but plate have slipped.
Scrap prices have also moved lower and are forecast to move lower again in September.
Zinc prices have been steadily moving lower forcing the steel mills to adjust their coating extras as the month came to a close (and into September with SDI making their announcement earlier today).
Please review some of the main items we watch on a monthly basis.
John Packard
Read more from John PackardLatest in Economy
Architecture firm billings remain down in January
Architecture firms continued to report a sharp reduction in billings in January, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.
New York state manufacturing rebounds in February
Business activity in New York state’s manufacturing sector recovered nicely in February after a sharp decline the previous month, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York. The general business conditions index rose 18 points to 5.7. This is a diffusion index, where a positive reading signifies […]
Dodge Momentum Index jumps to record high in January
The Dodge Momentum Index (DMI) rose to a record high in January, according to the latest data released by Dodge Construction Network.
CRU: China hits back with retaliatory tariffs on US
Targets include coal, liquified natural gas, crude oil, and other commodities
ISM: Manufacturing expands in January for first time in years
Following more than two years of contraction, US manufacturing activity rebounded in January according to the Institute for Supply Management.