Economy

SMU's February At-a-Glance

Written by Brett Linton


Looking back at the numbers for February, flat rolled steel prices declined from January, with the benchmark price of hot rolled dipping to a monthly average of $576 per ton. Steel Market Update’s Current and Future Steel Buyers Sentiment Indexes showed some erosion, likely as a response to the weak steel prices and concerns over the cornonavirus outbreak in China and its potential to disrupt global supply chains.

SMU’s latest market canvass puts the average price of hot rolled at $560 per ton, down from a January high of $610 per ton. As for most of February, SMU’s Price Momentum Indicator is currently set at Neutral until the market establishes a clear direction. Several of the domestic mills announced a $40 increase in flat rolled on Thursday in the hopes of firming up prices in March.

Scrap prices also declined in February from the prior month, adding to the downward pressure on finished steel prices. SMU sources expect higher scrap prices in March, which should lend support to the mills’ price increase effort.

See the chart below for other key metrics in the month of February:

Brett Linton

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.