ENERGY PRICES CONTINUE TO SKYROCKET
The 12-month increase for energy prices came in at 34.6%, the largest increase since September 2005. Additionally, oil is now hovering over $120 a barrel with the average diesel price of $5.73 a gallon, and gasoline price of $5.01 a gallon, both setting all-time highs.
After a flat reading last week, zinc pricing softened further this week.
Spot iron ore pricing decreased slightly this week after climbing the previous four weeks.
Pacific Basin met coal pricing continues to soften as well, sliding for the third consecutive week.
Current pricing is at $378.50/mt, the lowest level since early January.
Despite the drop, pricing is still up 150% from this time last year.
Energy prices continue to skyrocket with oil hovering over $120/barrel.
- Average diesel and gasoline prices continue to set all-time highs at $5.73/gallon and $5.01/gallon, respectively.
Domestic raw steel production increased slightly last week after dropping the previous week, now up five out of the last six weeks.
- U.S. steelmakers produced 1.784 million tons at an 81.7% utilization rate.
- Cliff’s outage at No5 blast furnace in Cleveland is also expected to go longer than initially anticipated.
- The outage is reportedly expected to last into Q3 and resume operations at the end of July.
Shipments of HVAC equipment slipped in April after climbing the previous two months.
HVAC equipment shipments totaled a 2.053 million units in April, down 9.0% from March and down 3.6% from 2.129 million units in April 2021.
This is only the second year-over-year decline in shipments in the last six months.
Prices paid by consumers continued to climb in May and remain at their highest level since December 1981.
- The Consumer Price Index increase 1.0% in May and up a sharp 8.6% compared to May 2021.
The increase was seen nearly across the board, with prices for shelter, gasoline, and food seeing the largest increases.
- The 12-month increase for energy was 34.6%, the largest increase since September 2005.
- The largest increases to the CORE-CPI were increased prices for shelter, airline fares, and vehicles, both new and used.
- The Federal Reserve is expected to hike rates 0.75% next week to combat inflation.
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.