SECOND REVISION OF Q2 2023 GDP SHOWED 2.1% GROWTH
The second revision to Q2 2023 GDP showed that the U.S. economy grew at a 2.1% rate on an annual basis which is slightly slower than the initial estimate of growth at a 2.4% rate. The new update reflected downward revisions to inventory investment and nonresidential investment. However, these downward revisions were partly offset by upward revisions to state and local government spending.
After sliding lately, zinc pricing increased this week.
Zinc pricing came in at $1.11/lb this week, up from $1.05/lb last week but has remained in a relatively tight range for the past month.
- The average over the past 30 days is $1.10/lb.
Spot iron ore pricing rebounded as well over the last week on the back of increased global buying.
- Spot iron ore pricing is currently at $122/mt, up $10/mt from last week and is virtually flat from the start of the year.
Met coal pricing continued to push higher this week, climbing to $268/mt on the increased demand from India.
- This is up 3.7% from last week and is up over 13.0% from this time last month.
U.S. raw steel production dropped sharply last week after climbing the previous two weeks.
- U.S. steelmakers produced 1.733 million tons at a 76.2% utilization rate after hitting a two-month high two weeks ago.
- The drop last week came from the Great Lakes and South regions.
- The current YTD utilization rate is at 75.9%, down 2.1% compared to the same time last year.
Preliminary total imports for August (24 days) were up slightly compared to the daily pace in July.
- Flat rolled imports are coming in at a slightly faster rate as well compared to the daily pace in July.=
US Steel published a letter to shareholders this week, indicating it has entered into nondisclosure agreements (NDAs) with numerous third parties and is commencing the due diligence process.
- The timing of the process remains unknown, although US Steel has indicated it is moving quickly to complete its strategic alternatives review.
- As a reminder, Cleveland-Cliffs is currently the only known bidder, and has the support of the US Steel’s union.
Confidence among U.S. consumers slowed in August after climbing in the previous two months.
The August Consumer Confidence Index came in at 106.1, down from a downwardly revised 114.0 in July.
- The present situation component fell to 144.8 from 153.0 previously.
- The expectations component, a short-term outlook, came in at 80.2, down from 88.0 in July.
- Despite the decline, the expectations component remained above the key 80.0 level for the second consecutive month.
- Historically, readings below 80 signal a recession within the next year.
- With the survey, questions about buying plans of big-ticket items like autos and appliances continue to trend upward, plans to buy homes continued to slide, however.
The second revision to Q2 2023 GDP showed that the U.S. economy grew at a 2.1% rate on an annual basis.
This is slightly slower than the initial estimate of growth at a 2.4% rate.
- The new update reflected downward revisions to inventory investment and nonresidential investment.
- These downward revisions were partly offset by upward revisions to state and local government spending.
- In Q2, the increase in GDP reflected increases in consumer spending, nonresidential investment, state and local government spending, and federal government spending.
- These increases were partly offset by declines in exports, residential investment, and inventory investment.
- Imports, which are a subtraction to GDP, declined.
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.