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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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Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in August 2024, 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 6.1% year on year (y/y) to 498.2 billion. On a 12MT basis, private expenditures increased by 4.8% y/y.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending September 27th was 152 oil and 65 gas (totaling 217). In percentage terms, on a month on month (m/m) basis, oil rigs were down 0.7% and gas down 3.0%. On a year on year (y/y) comparison, rigs were up 32.2% for oil and down 14.5% for gas. The combined figure for y/y was +14.1% or +27 rigs.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending September 27th was 484 oil and 99 gas (totaling 583). In percentage terms, on a month on month (m/m) basis, oil rigs were up 0.2% and gas up 4.2%. On a year on year (y/y) comparison, rigs were down 3.6% for oil and down 14.7% for gas. The combined figure for y/y was -5.8%, or -36 rigs.
U.S. Steel Capacity Utilization: The total tonnage for the week ending September 28th was 1.646 million net tons, at a capacity utilization rate of 74.1%. The year-to-date tonnage output is 67.112 million net tons, at an average capacity utilization rate of 77.5%. In 2023, the same output total was 66.388 million net tons, at an average capacity utilization of 75.5%.
U.S. Capacity Utilization was 78.2% in June, flat month on month (m/m). Mexico Capacity Utilization was 81.1% in June, down 2.0% month on month (m/m). Canada Capacity Utilization was 79.1% in June, up 0.6% quarter on quarter (q/q).
Advance Durable Goods Orders: The U.S. Census Bureau reported that new orders for durable goods in August 2024 was flat (m/m) to $289.7, following the 9.9% increase in July. The always-volatile nondefense aircraft orders, down 31.0% y/y, influenced this trend significantly.