NEW DURABLE GOOD ORDERS ON THE RISE
Demand for durable goods has only continued to grow, now up in seven of the last eight months, increasing 0.7% from April at a $267.2 billion rate. New orders for primary metals has increased sharply, climbing 3.1% to a $21.6 billion rate. Additionally, unfilled new orders for all manufactured durable goods continued to climb, now up for the twenty-first consecutive month.
After rebounding last week, zinc pricing continued to slide this week on the prospects of declining demand through the back half of the year.
Spot iron ore pricing continued to rebound in pricing after finishing the second half of last week strong.
Pacific Basin met coal pricing continued its recent slide this week.
Current pricing is at $320.00/mt, down nearly 15% from the end of last week.
While pricing is still down 31% compared to this time last month, pricing is up 72% from this time last year.
U.S. Steel will construct a direct-reduced grade facility at one of its two Minnesota iron ore mines.
Domestic raw steel production declined for the second consecutive week last week.
- U.S. steelmakers produced 1.750 million tons at an 80.2% utilization rate.
- This was the lowest weekly output for domestic production since the second week of April.
- YTD production is now down 2.0% from the same time last year.
Based on preliminary import licenses, daily average imports in the first 20 days in June increased 4.5% compared to the rate in May.
- The coated flat rolled import rate is down 2.1% compared to the rate in May.
U.S. Steel announced that it signed a non-binding letter of intent with SunCoke Energy for a potential deal in which SunCoke would acquire U.S. Steel’s two blast furnaces at Granite City Works in Illinois and build a 2M-ton granulated pig iron production facility.
- USS will probably move forward and cease operations of the BOF, hot mill, and probably Cold Mill. It is likely that USS will continue to operate the coating line that makes galvanized and Galvalume.
- This will represent a reduction of HR capacity in market.
New orders for manufactured durable goods continued to climb in May and are now up in seven of the last eight months.
New orders for durable goods came in at a $267.2 billion rate, up 0.7% from April.
Excluding the volatile transportation segment, new orders were up 0.7% as well.
- New orders for primary metals increased sharply, climbing 3.1% to a $21.6 billion rate.
- Fabricated metal product new orders were flat from April, holding at a $36.9 billion rate.
- Unfilled new orders for all manufactured durable goods continued to climb, now up for the twenty-first consecutive month.
- Unfilled orders increased 0.3% to a $1.110 trillion rate.
Confidence among U.S. consumers slipped slightly in June after a declining slightly in May.
The third and final estimate of Q1 2022 GDP showed that the U.S. economy declined at a 1.6% annual rate.
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.