Economy

SMU's February At-a-Glance
Written by Brett Linton
February 29, 2020
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 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.