Economy
April at a Glance
Written by Brett Linton
March 31, 2019
April saw steel prices lose momentum as hot rolled dipped to an average of $662, cold rolled to $803 and galvanized G90 to less than $900 per ton. Even plate, which has been in tight supply, has now moderated to around $964 per ton from prices near or above $1,000 earlier in the year.
Steel Market Update has moved its Price Momentum Indicator to Lower, meaning prices are likely to decline over the next 30 days. Steel Buyers Sentiment has waned slightly along with prices in the past few months as uncertainty over tariffs and trade continues to weigh on the market.
Adding to the downward pressure on steel prices is weakness in scrap. The market price for shredded scrap declined to $330 per ton in April, while busheling dipped to $365 and HMS to $305. Steel Market Update’s scrap market sources are predicting another big drop for scrap prices in May.
On the demand side through March, ISM’s Manufacturing Index still showed healthy growth at a reading of 55.3. Automotive vehicle production kept up an annualized pace of 17.5 million vehicles. Architectural billings, a leading indicator of construction activity, showed a slight decline, however. Uncertain demand in the construction and energy sectors (note the slight decline in the U.S. rig count in April) are only adding to industry sentiment that is strong, but could be stronger.
To see a history of our monthly review tables, visit our website here.
Brett Linton
Read more from Brett LintonLatest in Economy
Architecture billings flat in October after months of contraction
Architecture firms reported stable billings in October, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek. This follows 20 months of contracting business conditions.
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
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.
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.