In the latest Steel Market Update, senior analyst David Schollaert reported a slight decrease in U.S. hot-rolled (HR) coil prices, while offshore prices have seen an increase. Nucor's HR spot price has remained stable at $750 per short ton for the fifth consecutive week. This stability comes amidst a backdrop of fluctuating market conditions and economic indicators 1.
The Dodge Momentum Index (DMI) experienced a decline in November, attributed to reduced planning for data centers and warehouses. However, U.S. construction spending showed a positive trend, rising by 7.2% year-over-year in October. The construction sector also added 25,000 jobs in September, indicating a robust labor market in this industry 1.
In other industry news, Insteel Wire Products has acquired Liberty Steel's Engineered Wire Products for $70 million, signaling ongoing consolidation within the steel sector 1. Looking ahead, the SMU Steel 101 Workshop is scheduled for March 11-12, 2025, and the SMU Steel Summit is planned for August 25-27, 2025, providing opportunities for industry professionals to engage and learn 1.
Additionally, Headwall Partners LLC's eighth annual Steel & Metals Outlook Survey indicated that 90% of corporate leaders in the North American steel and metals industry believe the U.S. economy is headed for a soft landing. Workforce availability was identified as the greatest risk to financial performance in 2024, followed by inflation and the upcoming presidential election. Price expectations for 2024 HRC are projected between $800 and $1,000 per ton 4.
Meanwhile, the Indonesian Ministry of Energy and Mineral Resources has set the Reference Coal Price (HBA) for May at $114 per ton, with reference prices for various metal commodities also established, including nickel at $17,472.38 per dmt 23. The complete survey results from Headwall Partners can be accessed on their website 4.