TOTAL CONSTRUCTION SPENDING UP FOR THE SIXTH CONSECUTIVE MONTH
Total construction spending continued to climbing in June and is now up for the sixth consecutive month. June construction spending came in at a $1.938 trillion rate, up 0.5% from May and up 3.5% from June 2022. Total spending has now increased, on a year-over-year basis, for forty-nine consecutive months.
After climbing higher last week, zinc pricing rebounded strongly again this week, now up for the fourth time in the last five weeks.
Zinc pricing came in at $1.17/lb this week, up from $1.13/lb last week but has remained in a relatively tight range for the past month.
Spot iron ore pricing has slipped over the last week on the back of declined buying by China.
- Spot iron ore pricing is currently at $116/mt, down $5/mt from last week but now down ~2.5% from the start of the year.
Australian met coal prices increased to the highest level since mid-May this week on the back of increase to improved buying interest.
- The current met coal price of $242/mt, is up 2.1% from last week and is up 3.9% from this time last month.
U.S. raw steel production increased once again last week and is now up for the third consecutive week.
- U.S. steelmakers produced 1.749 million tons at a 76.9% utilization rate: climbing to its highly weekly output in a month.
- Despite the recent increases, the current YTD utilization rate is at 75.8%, down 2.4% compared to the same time last year.
Last week, Nucor received its final federal permit to begin construction on its sheet mill in Mason County, West Virginia.
- Construction is set to begin immediately and expected to last about two years.
- Nucor is investing ~$3.1b to construct the 3mtpy EAF mill.
Preliminary total imports for July were down 1.6% compared to the same daily pace in June.
- Flat rolled imports are coming in at a 5.9% decline compared to the daily pace in June.
Mexican steelmaker AHMSA said there could be an indefinite delay to the restart of production because of a blockade by activists.
- AHMSA indicated it could not supply gas to maintain the temperature of the furnaces in coking plant No. 1 as a result of the blockade, with the cooling process causing damage.
- This will also likely complicate the process of takeover by new investors.
- As a reminder, AHMSA’s production (~4-5mtpy capacity) has been shut down since December due to financial issues.
Business activity, from the manufacturing sector, in the Chicago region continued to contract in July.
The Chicago PMI came in at 42.8, up slightly from 41.5 in June
- Despite the contraction, the index was at the highest level since March.
- This is the eleventh consecutive month of contraction.
- Any reading below 50 shows contraction, while any reading above 50 shows expansion.
Total construction spending continued to climbing in June and is now up for the sixth consecutive month.
June construction spending came in at a $1.938 trillion rate, up 0.5% from May and up 3.5% from June 2022.
- Total spending has now increased, on a year-over-year basis, for forty-nine consecutive months.
- Spending for both non-residential and residential projects increased in June, climbing 0.1% and 0.9%, respectively.
- The June increase for non-residential spending followed a 0.2% decline in May.
- Residential spending now accounts for 44.7% of total spending, its highest rate since March.
U.S. light vehicle sales slowed in July after seeing a jump in June.
- U.S. light vehicle sales totaled 1.299 million units, down 5.1% from June but up 15.3% from 1.127 million units in July 2022.
- This is the twelfth consecutive month in which sales increased on a year-over-year basis.
- Sales of both cars and light trucks declined, sliding 7.4% and 5.2%, respectively from June.
- This was the lowest monthly total for light truck sales since February.
- Year-to-date light vehicle sales are now up 13.3% compared to the first seven months of last year.
This material, information and analyses (the “Content”) may include certain statements, estimates and projections prepared with respect to, among other things, historical data and anticipated performance. Content may reflect various assumptions by Majestic Steel USA, Inc. concerning anticipated results that are inherently subject to significant economic, competitive and other uncertainties and contingencies and have been included for illustrative purposes. Content is provided AS-IS.