Economy

October at a Glance
Written by Brett Linton
November 3, 2019
Steel prices continued their decline in October to an average hot rolled price below $500 per ton, prompting a $40 per ton price increase announcement by the flat rolled mills late in the month. With a price change in play, Steel Market Update switched its Price Momentum Indicator to Neutral.
Widespread concerns about the declining prices and questionable demand took SMU’s Steel Buyers Sentiment Index to even lower levels in October. The Institute for Supply Management’s PMI, which registered 49.1 in August, 47.8 in September and 48.3 in October, remains in contraction below the 50-point level that signals growth in manufacturing. In the energy sector, the rig count declined further in October. Automotive production remains a bright spot for steel demand, although it will feel some impact from the 40-day strike by the UAW against General Motors
Adding to the downward pressure on finished steel prices in October were weak ferrous scrap prices that have also been on the decline for the past few months. Sources tell SMU they expect scrap prices to increase by at least $20/GT in November, perhaps reversing the slide.
See the chart below for more benchmarks for the month of October.
To see a history of our monthly review tables, visit our website here.

Brett Linton
Read more from Brett LintonLatest in Economy

ISM: Manufacturing expansion loses steam after two months of growth
US manufacturing activity slowed in March after two straight months of expansion, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.

Chicago Business Barometer rose to 16-month high in March
The Chicago Business Barometer increased for the third-consecutive month in March. Despite this, it still reflects contracting business conditions, as it has since December 2023.

Durable goods orders rise again in February
Transportation equipment led the increase, rising 1.5% to $98.3 billion.

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.