Economy

SMU's May At-a-Glance

Written by Brett Linton


Steel prices inched upwards during the month of May following price increase announcements by the mills, with the SMU hot rolled index reaching $500 per ton last week. Scrap prices increased over April, as did zinc and aluminum prices.

SMU Buyers Sentiment Index readings increased over April, with Current Sentiment coming back into positive territory and reaching +29 at the end of the month. Future Sentiment rebounded from +25 to +44, while the three-month moving average ended the month at +6.67 as of last Friday.

The SMU Price Momentum Indicator remained at Neutral for the entire month, after moving from Lower on April 30.

Key indicators of steel demand were mixed, but with more data points reflecting the downturn compared to last month. The AIA Billings Index fell from 33.3 to 29.5, and private employment shrunk by nearly 20 million jobs. (Note, figures in the chart are monthly averages.)

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

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.