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Market Update
The Gerdau Market Update tracks and analyzes over 100 data streams that affect long steel consumption, attempting to provide the latest on market trends. Below, you will find the most recent information about Macroeconomics, Steel Econometrics, Construction and Manufacturing as it becomes available.
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ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index decreased by 1.2 points month on month (-2.3% m/m) to 49.4 in April 2024.
ISM Manufacturing Index: The Institute for Supply Management’s manufacturing index moved down -2.2% (m/m) to 49.2 for April 2024; this value is weaker than the forecast of 50. The new orders sub-index scored at 49.1. The data reflected a contraction in the US manufacturing sector, failing to maintain earlier traction as the prior month pointed to the first expansion in 16 months.
U.S. Steel Capacity Utilization: The total tonnage for the week ending April 27th was 1.701 million net tons, at a capacity utilization rate of 76.6%. The year-to-date tonnage output is 22.105 million net tons, at an average capacity utilization rate of 77.1%. In 2023, the same output total was 28.242 million net tons, at an average capacity utilization of 74.1%.
Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in March 2024, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that March’s three month total (3MT) construction expenditures grew by 9.6% year on year (y/y) to 299.8 billion. On a 12MT basis, private expenditures increased by 4.2% y/y.
Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand increased 0.2% in March 2024 (seasonally adjusted), after increasing 0.6% in February. The index for final demand goods decreased 0.1% in March, after rising 1.2% in February, while the index for final demand services moved up 0.3%, the third consecutive rise. A major factor in the March increase in prices for final demand services was the index for securities brokerage, dealing, investment advice, and related services, which rose 3.1 percent.
U.S. Capacity Utilization was 78.7% in December, down 0.4% month on month (m/m). Mexico Capacity Utilization was 75.4% in December, down 3.0% month on month (m/m). Canada Capacity Utilization was 78.7% in December, down 0.1% quarter on quarter (q/q).