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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 October 2024, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that October’s three month total (3MT) construction expenditures grew by 2.1% year on year (y/y) to 501.4 billion. On a 12MT basis, private expenditures increased by 4.6% y/y.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending November 29th was 134 oil and 70 gas (totaling 204). In percentage terms, on a month on month (m/m) basis, oil rigs were down 8.2% and gas up 4.5%. On a year on year (y/y) comparison, rigs were up 9.8% for oil and flat for gas. The combined figure for y/y was +6.8% or +13 rigs.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending November 29th was 477 oil and 100 gas (totaling 577). In percentage terms, on a month on month (m/m) basis, oil rigs were down 0.4% and gas down 2.0%. On a year on year (y/y) comparison, rigs were down 5.5% for oil and down 13.8% for gas. The combined figure for y/y was -6.9%, or -43 rigs.
ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index decreased by 3.9 points month on month (-7.0% m/m) to 52.1 in November 2024.
ISM Manufacturing Index: The Institute for Supply Management’s manufacturing index moved up 1.9% (m/m) to 48.4 for November 2024; this value is weaker than the forecast of 50. The new orders sub-index scored at 50.4. The reading pointed to another albeit softer contraction in the manufacturing sector. New orders rebounded after seven months of contraction and production, employment and inventories contracted less.
U.S. Steel Capacity Utilization: The total tonnage for the week ending November 30th was 1.638 million net tons, at a capacity utilization rate of 73.8%. The year-to-date tonnage output is 81.823 million net tons, at an average capacity utilization rate of 76.7%. In 2023, the same output total was 79.956 million net tons, at an average capacity utilization of 75.2%.