Market Update | June 8, 2022



The Dodge Momentum Index (DMI), the report for nonresidential building projects, jumped 7% in May to 176.2, up from the revised April reading of 165.2. Commercial planning is being driven by an increase in office and hotel projects. The DMI has now surpassed the previous high reached November 2021.


Input Costs

After rebounding last week, zinc pricing was virtually flat this week.

    • Zinc pricing is currently at $1.70/lb, a still elevated level however.


Spot iron ore pricing increased slightly this week, climbing to $147.25/mt.

    • Spot iron ore pricing is now up 12.1% m/m but still 27.4% below prior year levels.

    • Spot iron ore pricing has now rebounded to its highest level in a month.


After sliding for nearly two consecutive weeks, Pacific Basin met coal pricing rebounded slightly to start the week.

    • Current pricing is at $423.25/mt, up 1.1% from the end of last week.

    • While pricing is still down 18.5% compared to this time last month, pricing is up 153% from this time last year.




Domestic raw steel production declined last week after climbing the previous four weeks.

    • U.S. steelmakers produced 1.798 million tons at an 81.6% utilization rate.
    • Despite the recent rebound, YTD production is now down 1.6% compared to the same timeframe last year.




The Dodge Momentum Index (DMI) jumped 7% in May to 176.2, up from the revised April reading of 165.2.

    • On a year-over-year basis, the Momentum Index was 17% higher than in May 2021.

    • The DMI is an initial report for nonresidential building projects in planning, which is shown to lead construction spending for nonresidential buildings by a full year.

    • The DMI is now at its current-cycle high, surpassing the previous high in November 2021.

    • During May, commercial planning was led higher by an increase in office and hotel projects.


Demand for mortgages continued to slide last week, sliding to its lowest level in 22 years.

    • Total mortgage application volume fell 6.5% last week compared with the previous week and were 21% lower than the same week last year.

    • Rising interest rates and a slight slowdown in home sales have helped contribute to the decline.

    • Refinance demand, which is most sensitive to weekly rate moves, fell another 6% for the week and was 75% lower than the same week one year ago.

    • The vast majority of mortgage holders now have rates considerably lower than the current one, and even those who would like to pull cash out of their homes are choosing second mortgages, rather than refinancing their first liens.





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.