July Market Minute 2024

What the Market is Telling Us

In recent weeks, we've noticed a shift in our customers' business patterns. While there's still work to bid for, their clients are increasingly hesitant to approve and fund future projects. Consequently, many customers are focusing on one order at a time or scheduling only a couple of jobs ahead, rather than committing to long-term projects. This trend varies by end market, but a general sense of caution is prevalent.

Despite the lighter business load, our customers are adapting creatively. Many are pivoting to service work, offering repair and maintenance services for previously sold products. This approach helps maintain steady business and reduces the need for purchasing new metal supplies.

Read more in the latest entry of Jonathan’s Journal here.

On the metals front, we are seeing some settling out of prices and influx of capacity on a few fronts. Here is a closer look:

Steel Long Prices
Since the price decrease in late March, MBQ and steel beam prices have held steady. However, hot rolled and cold finished SBQ base pricing remains soft, with SBQ surcharges staying flat from May to June and down roughly $60/ton from the Q1 average.

Tubing prices have decreased by more than $400/ton year-to-date, reflecting trends in sheet pricing. The abundance of capacity has led to additional softness in various grades. Some anticipate that this pricing slide could continue to follow the trends in sheet pricing in the months ahead.