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 Manufacturing Index: The Institute for Supply Management’s manufacturing index moved up 1.2 points month on month (m/m) to 61.1 for September 2021; this value is stronger than the forecast of 50. The new orders sub-index scored a 66.7. Overall, the ISM manufacturing index is strong, while the global economy is beginning to strengthen again following shutdowns throughout Covid-19.
ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index increased by 0.2 points month on month (+0.3% m/m) to 61.9 in September 2021.
­­­Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in August 2021, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that August’s three month total (3MT) construction expenditures grew by 12.5% year on year (y/y) to $425.8 billion. On a 3MT basis, private expenditures advanced 19.4% y/y, state & local declined by 2.0% y/y, and federal spend decreased 16.1% y/y.
Employment by Industry (U.S.): In September 2021, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 147.55 million (M) – an increase of 194,000 (+0.1%) month on month (m/m). When compared to September 2020, total employment is up by 4.0% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest gains in the goods-producing and construction sectors, each growing by 0.3% this month.
­­U.S. Steel Capacity Utilization: The total tonnage for the week ending September 25th was 1.880 million net tons, at a capacity utilization rate of 85.2%. The year-to-date tonnage output is 70.216 million net tons, at an average capacity utilization rate of 80.3%. In 2020, the same output total was 58.477 million net tons, at an average capacity utilization of 65.8%.
Crude Oil & Natural Gas Pricing: September’s average West Texas Intermediate (WTI) crude oil price per barrel increased 6% month on month (m/m) – recovering after it dipped in August. The WTI is up 81% year on year (y/y), coming in at $71.65 / barrel in September 2021 vs. $39.63 / barrel in September 2020. By comparison, Brent crude rose 5% m/m to $74.49 / barrel in September 2021, and experienced growth of +82% y/y ($40.91 / barrel in September 2020).


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