August Market Minute 2023

Have Steel Prices Settled?

The price of hot-rolled coil has been hovering around the $800/ton mark for multiple weeks and down more than $200/ton since May 1.

Capacity levels have also begun to stabilize and are more in line with historical norms (see below). It is important to note that major consuming industries like auto, construction, and energy can significantly move the needle in either direction as they account for a significant amount of available capacity.

Checking in On Stainless Surcharges

Nickel prices have fallen lately, which could impact stainless surcharges in the month ahead. See below for the August surcharges and the estimated surcharge for September.

Manufacturing Activity: What Fabricators Are Saying

Manufacturing activity has slowed across the U.S., including Texas. On a more granular level, fabricated metal product manufacturing companies shared some of their biggest challenges moving forward.

According to the latest report from the Dallas Fed, Texas factory activity declined in July. The production index, a key measure of state manufacturing conditions, held steady at -4.8, a reading indicative of a modest contraction in output. Here are two comments of note from fabricated metal product manufacturers from the survey: