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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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Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending February 28th was 177 oil and 71 gas (totaling 248). In percentage terms, on a month on month (m/m) basis, oil rigs were down 4.8% and gas down 1.4%. On a year on year (y/y) comparison, rigs were up 22.9% for oil and down 18.4 for gas. The combined figure for y/y was -18.4% or +17 rigs.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending February 28th was 486 oil and 102 gas (totaling 588). In percentage terms, on a month on month (m/m) basis, oil rigs were up 1.5% and gas up 4.1%. On a year on year (y/y) comparison, rigs were down 4.0% for oil and down 14.3% for gas. The combined figure for y/y was -5.7%, or -36 rigs.
ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index increased by 0.7 points month on month (+1.3% m/m) to 53.5 in February 2025.
ISM Manufacturing Index: The Institute for Supply Management’s manufacturing index moved down 1.2% (m/m) to 50.3 for February 2025; this value is stronger than the forecast of 50. The new orders sub-index scored at 48.6. The reading pointed to slower growth in the manufacturing sector as demand eased, production stabilized, and destaffing continued as companies experienced the first operational shock of the new administration’s tariff policy (Timothy Fiore, Chair of ISM).
Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in January 2025, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that January’s three month total (3MT) construction expenditures decreased by 2.0% year on year (y/y) to 444.1 billion. On a 12MT basis, private expenditures increased by 3.7% y/y.
U.S. Steel Capacity Utilization: The total tonnage for the week ending February 22nd was 1.659 million net tons, at a capacity utilization rate of 74.5%. The year-to-date tonnage output is 13.239 million net tons, at an average capacity utilization rate of 74.3%. In 2024, the same output total was 13.628 million net tons, at an average capacity utilization of 76.7%.