U.S. & CANADIAN TRACTOR & COMBINE SHIPMENTS INCREASE
N.A. (Canada and US) tractor and combine shipments increased for the second consecutive month in October. Shipments totaled 30,162 units, up 24.1% from September but down 7.0% from 32,420 in October 2022. Shipments, on a year-over-year basis, have now declined for five consecutive months and in twenty of the last twenty-one months. Looking on a year-over-year basis, to smooth seasonality, shipments of both tractors and combines declined, sliding 4.3% and 43.9%, respectively.
After slipping last week, zinc pricing rebounded this week on the back of a slowing U.S. dollar (after the Fed hinted at an end to the rate increases).
- Zinc pricing increased to $1.20/lb this week and has remained in a relatively tight range for the past month.
- The average over the past 30 days is $1.13/lb.
Iron ore pricing rebounded this week on the anticipation of a new round of stimulus announcements from China.
- Spot iron ore pricing came in at $136/mt, closing in on its highest level since June 2022.
Met coal pricing declined this week, sliding to $300/mt on softer buying interest from India coupled with increased Australian supply.
- This is down 6.3% from last week and is down 18.3% from this time last month.
US raw steel production slipped again last week and is now down inback-to-back weeks.
- US steelmakers produced 1.683 million tons at a 73.2% utilization rate.
- This is the lowest weekly output since mid-April.
- The current YTD utilization rate is at 75.6% down, 0.6% compared to the same time last year.
After the sharp drop in October, preliminary November (11 days) carbon flat rolled imports are down 2.9% compared to October.
- Preliminary carbon flat rolled imports are on track to have their lowest monthly total since April.
- Coated flat rolled imports are down as well, sliding 7.9% compared to the daily pace in September.
N.A. (Canada and US) tractor and combine shipments increased for the second consecutive month in October.
- Shipments totaled 30,162 units, up 24.1% from September but down 7.0% from 32,420 in October 2022.
- Shipments, on a year-over-year basis, have now declined for five consecutive months and in twenty of the last twenty-one months.
- Looking on a year-over-year basis, to smooth seasonality, shipments of both tractors and combines declined, sliding 4.3% and 43.9%, respectively.
- Shipments, on a y/y basis, of tractors have now declined in five consecutive months while combine shipments are down three straight times.
- Year-to-date shipments are now down 8.0% compared to the same time framelast year.
Business activity, in the New York region, increased in November afterdeclining previously.
- The November Empire Manufacturing Index came in at 9.1, up 13.7 points from the -4.6 reading in October.
- The two-month average increased to 2.3, up from -1.4 previously.
- Any reading above 0.0 shows growth, while any reading below 0.0 shows contraction.
- The boost to the overall index was helped by the sharp 8.6-point increase in the shipment component, which increased to 10.0.
- The new order component slipped slightly, sliding 0.7 points to -4.9.
- The unfilled order component dropped at a faster rate, sliding to -23.2 from -19.1 previously.
- The index for future business conditions dropped twenty-four points to -0.9, its lowest level in nearly a year.
Prices paid by consumers grew at a slower annual rate in October after climbing at a faster rate the previous two months.
- The October Consumer Price Index increased 3.24% from last October, the lowest year-over-year increase since July.
- Excluding the volatile food and energy sector, prices increased at 4.03% on a year-over-year basis in October.
- This was the lowest year-over-year increase since September 2021.
- Within the CORE-CPI, the largest increases, on an annual rate, came from shelter, auto insurance, recreation, and personal care.
- The sharpest decline in prices came from used vehicles and medical care.
Retail sales, on a seasonally adjusted basis, declined in October after climbing in the previous six months.
- Total retail sales came in at a $705.0 billion rate, down 0.1% from September but up 2.5% from the $687.9 billion rate in October 2022.
- Excluding the volatile gas station sales, total sales slipped 0.1% from September, but were up 3.5% from October 2022.
- The largest increases in sales in October came from health and beauty stores, grocery stores, and online retailers.
- These increases only partly offset the declines seen in furniture stores, auto dealers, sporting good stores, and building material stores.
- Year-to-date actual total retail sales are up 3.0% compared to the same timeframe last year.
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.