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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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ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index increased by 1.1 points month on month (+2.0% m/m) to 56.0 in October 2024.
ISM Manufacturing Index: The Institute for Supply Management’s manufacturing index moved down 0.7% (m/m) to 46.5 for October 2024; this value is weaker than the forecast of 50. The new orders sub-index scored at 47.1. The reading pointed to another contraction in the manufacturing sector and the lowest since July 2023, as demand continues to be weak, output declined, and inputs stayed accommodative.
Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in September 2024, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that September’s three month total (3MT) construction expenditures grew by 2.8% year on year (y/y) to 500.4 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 October 25th was 150 oil and 66 gas (totaling 216). In percentage terms, on a month on month (m/m) basis, oil rigs were down 1.3% and gas up 1.5%. On a year on year (y/y) comparison, rigs were up 23.0% for oil and down 10.8% for gas. The combined figure for y/y was -10.8% or +20 rigs.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending October 25th was 480 oil and 101 gas (totaling 581). In percentage terms, on a month on month (m/m) basis, oil rigs were down 0.8% and gas up 2.0%. On a year on year (y/y) comparison, rigs were down 4.8% for oil and down 13.7% for gas. The combined figure for y/y was -6.4%, or -40 rigs.
U.S. Steel Capacity Utilization: The total tonnage for the week ending October 26th was 1.660 million net tons, at a capacity utilization rate of 74.7%. The year-to-date tonnage output is 73.629 million net tons, at an average capacity utilization rate of 77.0%. In 2023, the same output total was 73.191 million net tons, at an average capacity utilization of 75.4%.