Market Update





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January 2022

Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand grew 0.2% in December 2021 (seasonally adjusted), following the 1.0% increase in November. The index for final demand services grew 0.5% (its twelfth consecutive advance) while the index for final demand goods moved down by 0.4%. A major factor in the December decrease in prices for final demand goods was the index for gasoline, which moved down 6.1%.
Employment by Industry (U.S.): In December 2021, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 148.95 million (M) – an increase of 199,000 (+0.1%) month on month (m/m). When compared to December 2020, total employment is up by 4.5% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest monthly gain in construction, similar to November data.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending December 25th was 39 oil and 51 gas (totaling 90). In percentage terms, on a month on month (m/m) basis, oil rigs were down 65.5% and gas down 23.9%. On a year on year (y/y) comparison, rigs were up 116.7% for oil and up 24.4% for gas. The combined figure for y/y was +52.5% or 31 rigs.
Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending December 25th was 480 oil and 106 gas (totaling 586). In percentage terms, on a month on month (m/m) basis, oil rigs were up 2.8% and gas was up 3.9%. On a year on year (y/y) comparison, rigs were up 79.8% for oil and up 27.7% for gas. The combined figure for y/y was +67.0%, or +235 rigs.
Crude Oil & Natural Gas Pricing: December’s average West Texas Intermediate (WTI) crude oil price per barrel decreased 9% month on month (m/m) – its second consecutive monthly drop. The WTI is up 53% year on year (y/y), coming in at $71.71 / barrel in December 2021 vs. $47.02 / barrel in December 2020.
Currency Report: The trade-weighted U.S. Broad Dollar Index posted a reading of 115.824 for December 2021 – up 0.7% month on month (m/m) – and its seventh consecutive monthly increase. This index value is up 3.5% on a year on year (y/y) basis.
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