Market Update | June 14, 2023



The Consumer Price Index, which measures changes in a multitude of goods and services, increased 0.1% for the month, bringing the annual level down to 4%. That 12-month increase was the smallest since March 2021, when inflation was just beginning to rise to what would become the highest in 41 years.


Input Costs

Zinc pricing is up for the second consecutive week after sliding eleven out of the previous twelve weeks.

    • Zinc pricing came in at $1.11/lb this week, up from $1.05/lb last week but still near its lowest level in more than two years.


Spot iron ore pricing continues to rebound, led by optimism that top steel producer China is moving to support its faltering economy, which would boost demand prospects.

    • Spot iron ore pricing is currently at $112.45/mt, up over $12.00/mt in the last two weeks but still down over 5% from the start of the year.


Coking coal remains rangebound this week after climbing the previous two weeks.

    • Continued buying interest from China this week helped push prices higher.
    • Coking coal pricing currently sits at $226/mt, relatively flat from $229/mt last week and still down 41.0% from the recent peak seen in mid-February.




U.S. raw steel production ticked down slightly last week, ending a stretch of four consecutive increases.

    • U.S. steelmakers produced 1.739 million tons at a 77.3% utilization rate, topping 76% for the sixth straight week.
    • Despite the drop, output was virtually flat compared to this week last year, when the utilization rate was 79.6%.
    • Year-to-date production is now down 5.2% compared to the same timeframe from last year.



The Consumer Price Index rose 0.1% in May on a seasonally adjusted basis, after increasing 0.4% in April.

    • However, over the last 12 months, the index increased 4%, nearly double the typical 2% target rate.

    • Prices for all goods, excluding food and energy, increased 5.3% from last year. inventories.
    • Shelter was the largest contributor to the monthly all items increase, followed by an increase in the index for used cars and trucks.








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.