Market Update | May 7, 2025

 

NORTH AMERICAN SHIPMENTS OF TRACTORS & COMBINES INCREASED SHARPLY IN APRIL

April North American (U.S. and Canada) shipments of tractors and combines increased sharply compared to March but continued to lag behind year ago levels. Shipments totaled 25,016 units, down 11.5% from the 28,251 unit total in April 2024. This was the twenty-third consecutive month in which shipments declined on a y/y basis. Looking on a year-over-year basis to help smooth seasonality, shipments of both tractors and combines declined. While tractor shipments were up 11.1%, combine shipments were down a sharp 20.8%. Year-to-date shipments are now down 13.1% compared to the same timeframe last year.​

 

PRICE

Domestic flat rolled pricing slipped this week as the headwinds negatively impacting the market are counterbalancing the tailwinds that helped jumpstart this upward pricing cycle.

  • General uncertainty about future pricing direction and demand has led to a pause in buying activity over the past few weeks and has led to the plateauing/reversing of this upward pricing cycle.

 

Input Costs

Zinc pricing was slightly higher this week as global demand outlook improved slightly on the thought of easing trade tensions.

  • Pricing increased to $1.23/lb this week, slightly above the thirty-day average of $1.19/lb.

 

Spot iron ore pricing dropped this week but remains in the very tight range we have seen for the past six weeks.

  • The current price is $1.02/mt, down from $1.07/mt reading last week.

 

After sliding $20/gt in April, #1 busheling scrap pricing dropped by $30/gt in May.

  • The sharp drop in May was led by increased domestic collection rates (mainly due to the improving weather across the U.S.). Increased manufacturing, particularly from the auto sector, helped to boost the scrap supply as well.
  • Shredded scrap pricing saw a sharper ($40/gt) decline in May.
    • This sharper decline pushed the prime pricing premium over shredded to $50/gt, the widest spread since June 2023.

 

SUPPLY

U.S. raw steel production increased again last week and is now up for the fourth time in the last five weeks.

  • U.S. steelmakers produced 1.740 million tons at a 77.5% utilization rate: up from 1.725 million tons previously.
    • This was the highest weekly output since mid-September.
  • Production is up 0.9% from last week and was up 1.0% from the same week last year.
  • Despite the recent increase, YTD production is still down 0.9% from the same timeframe last year.

 

DEMAND

April North American (U.S. and Canada) shipments of tractors and combines increased sharply compared to March but continued to lag behind year ago levels.

  • Shipments totaled 25,016 units, down 11.5% from the 28,251 unit total in April 2024.
    • This was the twenty-third consecutive month in which shipments declined on a y/y basis.
  • Looking on a year-over-year basis to help smooth seasonality, shipments of both tractors and combines declined.
    • While tractor shipments were up 11.1%, combine shipments were down a sharp 20.8%.
  • Year-to-date shipments are now down 13.1% compared to the same timeframe last year.​

 

ECONOMIC

Prices paid by U.S. consumers increased in April, however it was the smallest year-over-year increase in over four years.

  • The Consumer Price Index increased 0.31% from March and was up 2.31% from April last year.
    • ​​The index for shelter increased 0.3% in April, accounting for more than half of all monthly increases.
  • ​The index excluding food and energy, increased at a slightly slower annual rate than in March.
    • Over the last twelve months the shelter index increased 4.0%.
    • Other indexes with notable increase over the last year include medical care (2.7%), motor insurance (6.4%), education (3.8%), and recreation (1.6%).
  • ​​Prices for durable goods increased slightly from March but were below year-ago levels for the twenty-ninth consecutive month.

 

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.