July 18, 2023
July Market Minute 2023
A Slight Softening in Steel Prices
As of July 18, the price of hot-rolled carbon (HRC) steel was $885/ton, showing a marginal increase compared to previous weeks. The recent slight uptick in sheet prices results from several U.S. mills implementing price hikes of roughly $50/ton.
The consensus from many in the market is that these price hikes were implemented to provide some pricing support amid declines.
In contrast, steel plate prices remain high due to robust demand conditions. As of early July, the price difference between plate-mill plate and HRC was approximately $666/ton.
Three Trends for Aluminum
Are you a buyer of aluminum? Check out these pricing trends as of late:
The price of LME aluminum has dipped below $1 per pound as of early July. This drop can be attributed to weaker international data and concerns about energy issues overseas.
There may be no surcharge on aluminum for the remainder of the year, due to a recent reset in the surcharge baseline.
While all three domestic aluminum plate suppliers are still on allocation, more common alloys are still readily accessible.
Are Stainless Prices Expected to Rise?
Stainless steel prices are stabilizing and some expect price increases for August, according to a report from The Steel News by Gerber Group.
Among the factors cited include an overall decline in production and a rebound in the price of nickel. Speaking to the latter, nickel prices have been on a wild ride over the past 12-15 months.
Texas is Growing by the Truckload
According to data from the Census Bureau, six of the 15 fastest-growing cities in the United States are in Texas. Ft. Worth is number one on that list, which has experienced substantial freight growth in the last three years.
According to DAT Freight & Analytics, the volume of dry van loads moved by truckload carriers in the Ft. Worth market since the start of 2019 has increased by 81%, while outbound loads to all destinations have increased by 67%.
On a related front, overall expected job growth in Texas for the next five years is predicted to be slightly more than 7%, somewhat lower than the growth rate for the preceding five years. According to a new report from the Texas Comptroller's office, this indicates a slightly slower but still steady jobs demand overall.
Oil Prices Increase, Output Decreases
In recent weeks, oil prices have surged due to a significant drop in crude oil prices compared to the previous year. As a result, numerous oil and gas rigs have gradually reduced production due to decreased profitability. This led to a consecutive fifth-week decline in oil and gas rig counts in the U.S., resulting in a slight increase in prices.