Economy

SMU's October At-a-Glance

Written by Brett Linton

November 3, 2020

Steel prices continued to climb in October as demand rose further on hot rolled, cold rolled and galvanized products. Steel Market Update’s hot rolled price index averaged $665 per ton in October, up nearly $100 over the previous month and up over $200 compared to August. The SMU Pricing Momentum Indicator remained at Higher, indicating prices are expected to rise over the next 30 days. Prices for prime and obsolete scrap were relatively steady compared to the month prior.

The SMU Buyers Sentiment Index peaked at +68 in mid-October, keeping the upward momentum seen in August and September. Both Current and Future Sentiment remained optimistic considering the ongoing pandemic; the three-month moving average reached +56.33 as of Oct. 30, steady over September levels and up significantly compared to August.

Key indicators of steel demand were overall positive. The ISM Manufacturing Index indicated further expansion, now at 59.3. Construction spending remained steady from August to September, though the AIA Billings Index, a predictor of future construction activity, jumped from 40.0 to 47.0. Private employment growth slowed to 877,000 in September, down from the previous two months.

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

October at a glance

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

Read more from Brett Linton

Latest in Economy