Economy

May at a Glance: Sentiment Sags

Written by Brett Linton

June 4, 2019

Steel Market Update’s Steel Buyers Sentiment Index dipped below the +50 mark and continued to erode last month as the uncertainty over tariffs and trade had a negative effect on buyers’ attitudes. With OEM and service center executives feeling less positive about their prospects for the next few months, as indicated by SMU Future Buyers Sentiment, it’s no wonder that steel price momentum remains on a downward trajectory. Buyers tell SMU they are reluctant to make purchasing decisions today when steel will be cheaper tomorrow. Buyers sentiment of +42, while still on the optimistic half of the scale, is down from a peak of +78 last year.

Steel prices declined by as much as $50 per ton during May, depending on the product. The benchmark price for hot rolled steel slid from around $640 per ton at the beginning of May to less than $600 by the end of the month. Cold rolled declined from $790 to $765, galvanized from $868 to $828 and plate from $940 to $890.

Weaker-than-expected demand for finished steel and ferrous scrap contributed to the declining steel prices in May.

To see a history of our monthly review tables, visit our website here.

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.