Economy

SMU's August At-a-Glance
Written by Brett Linton
September 2, 2020
Steel prices gained momentum in August as demand improved and the mills announced a new round of price increases. As of last week, Steel Market Update’s hot rolled price average had risen to $485 per ton, up $45 in just two weeks from the mid-month low, and has since topped the $500 mark. Scrap prices were flat to slightly down from July to August. SMU adjusted its Price Momentum Indicator from Neutral to Higher on Aug. 20.
SMU Buyers Sentiment Index readings further recovered, with Current Sentiment reaching +50 at the end of August. Future Sentiment ended the month at +47, while the three-month moving average reached +38.50 as of Aug. 21, the highest 3MMA seen in 20 weeks. Note that monthly sentiment readings in the chart below are averages for each month.
Key indicators of steel demand were mixed; the AIA Billings Index remained steady at 40.0, and private employment increased, albeit at a lesser rate compared to previous months. Construction spending increased in July but remained below May figures. The latest data on total steel imports showed a decline in June, while exports and apparent steel supply both increased.
See the chart below for other key metrics in the month of August:

Brett Linton
Read more from Brett LintonLatest in Economy

New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey

Construction adds 13,000 jobs in March
The construction sector added 13,000 jobs, seasonally adjusted, in March, but tariffs could undermine the industry.

Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them

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.