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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Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand declined 0.2% in May 2024 (seasonally adjusted), after increasing 0.5% in April. The index for final demand goods decreased 0.8% in May, the largest decline since moving down 1.2 percent in October 2023 , while the index for final demand services was unchanged in May after increasing 0.6 percent in April. Nearly 60 percent of the May decrease in the index for final demand goods can be traced to a 7.1-percent decline in prices for gasoline.
ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index increased by 4.4 points month on month (+8.9% m/m) to 53.8 in May 2024.
ISM Manufacturing Index: The Institute for Supply Management’s manufacturing index moved down -0.5% (m/m) to 48.7 for May 2024; this value is weaker than the forecast of 50. The new orders sub-index scored at 45.4. The reading showed another contraction for the manufacturing activity as demand was soft again, output was stable, and inputs stayed accommodative.
Crude Oil & Natural Gas Pricing: May’s average West Texas Intermediate (WTI) crude oil price per barrel decreased 6% month on month (m/m). The WTI is up 12% year on year (y/y), coming in at $80.12 / barrel in May 2024 vs. $71.58 / barrel in May 2023.
Currency Report: The trade-weighted U.S. Broad Dollar Index posted a reading of 122.244 in May, down 0.22% m/m, reversing trend after increasing last month. This index value is up 1.99% on a year on year (y/y) basis. Month over month, we saw the Brazilian real, Canadian dollar, Chinese yuan, Mexican peso, and South Korean won strengthen vs. the USD in May.
Employment by Industry (U.S.): In May 2024, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 158.5 million (M) – an increase of 272,000 (+0.2%) month on month (m/m). When compared to May 2023, total employment is up by 1.8% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest monthly gain in the construction of buildings sector with a growth of 0.3% m/m.


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