MANUFACTURING ECONOMIC ACTIVITY CONTINUED TO GROW IN JULY
The July ISM Manufacturing Index came in at 52.8, down slightly from 53.0 in June but still above the key 50.0 mark. Despite slowing slightly, the manufacturing sector has been in expansion for twenty-six consecutive months. The backlog of orders component grew at a slightly slower rate in July but remained in expansion for the twenty-fifth consecutive month.
Zinc pricing rebounded this week, climbing to its highest level since mid-June.
Spot Iron Ore pricing saw a bump for the second consecutive week.
Pacific Basin met coal pricing continued its recent slide this week.
Current pricing is at $188/mt, down 5.5% from the end of last week.
While pricing is down 38% compared to this time last month, pricing is now down on a year-over-year basis (12.5%) for the first time in over a year.
Domestic raw steel production fell last week, now down for the third timein the last four weeks.
- U.S. steelmakers produced 1.727 million tons at an 78.4% utilization rate.
- This is the lowest weekly output since the first week of April.
- YTD production is now down 2.9% from the same time last year.
Based on preliminary import licenses in July, the daily average imports were down 15.3% m/m (-20.1% y/y).
- Excluding slabs, daily avg imports decreased 18.1% m/m.
Total construction spending declined on a seasonally adjusted basis in June, sliding on a month-over-month basis for the first time since February 2021.
Total construction spending slipped to a $1.762 trillion rate, down 1.1% from May but still up 8.5% from the $1.625 trillion rate in June 2021.
While spending on both residential and non-residential projects slipped in June, the decline was much sharper for residential projects.
- Residential construction spending declined 1.6% from May to a $932.9 billion rate, the lowest level since March.
- Non-residential spending slipped as well, sliding 0.5% to a $829.4 billion rate.
- Non-residential spending has now declined in consecutive months and in three of the last four months.
Economic activity from the manufacturing sector continued to grow in July, just at a slightly slower rate than months prior.
Sales of light vehicles, in the U.S., increased for the second consecutive month in July.
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.