Sheet Metal

October 2021 Market Insight

Economic News

The U.S. unemployment claims fell to 326,000 last month, the first drop in four weeks, a sign that the U.S. job market and economy continue their steady recovery from last year’s recession.

A couple new surveys of the U.S. economy show it is expanding at a rapid pace, but the ongoing labor and supply shortages are still dragging growth.

Economic Indicators

The September Purchasing Managers Index registered at 61.1%, up 1.2 points from the previous month. This indicates expansion in the overall economy as any score above 50 represents expansion. The New Orders Index registered at 66.7%, unchanged from August’s score. The Production Index registered at 59.4%, down 0.6 points from August.

Architecture firm billings remained strong in August, with the Architecture Billings Index registering at 55.6. Despite concerns of the new Delta variant, most firms continue to report robust business conditions.

The Consumer Confidence Index, however, declined in September. The Index now stands at 109.3, down from 115.2 in August.

Industry News

U.S. construction spending reached a seasonally adjusted annual rate of $1,584.1 billion in August, up slightly from July’s estimate. Year-to-date construction spending marked at 7.0% increase year-over-year.

Global aluminum production dropped in August as prices touched a 13-year high. However, output increased from the estimated 5.52 million metric tons in August 2020.

For more information, contact your local sales rep or view the October 2021 Market Insight Guide below.

Cd'A Metals Market Insight October 2021
Sheet Metal

August 2021 Market Insight Guide

Economic News

The U.S. economy most likely gained steam in the second quarter, as massive government aid and vaccinations for COVID-19 fueled travel spending. The possible acceleration would lift the level of GDP above its peak in the 4th quarter of 2019.

The U.S. had its largest monthly gain in jobs since August 2020, adding 943,000 jobs in July. The unemployment rate fell to 5.4% from 5.9%.

Economic Indicators

The July Purchasing Managers Index registered at 59.5%, a decrease of 1.1 points from the previous month. This figure still indicates expansion in the overall economy for the 14th consecutive month as any score above 50 represents expansion.

Architecture firms reported another month of strong business conditions in June, with the Architecture Billings Index registering at 57.1. This current pace of billings growth is near the highest levels ever seen in the history of the index.

The Consumer Confidence Index was relatively unchanged in July, standing at 129.1, up from 128.9 in June. The Present Situations Index rose from 159.6 to 160.3.

Industry News

The Midwest aluminum premium price hit a record high at the end of July. This rapid increase caught the attention of the U.S. Senate and trade associations. The Aluminum Pricing Examination Act was reintroduced and would give the U.S. Commodity Futures Trading Commission the jurisdiction over the market.

The Aluminum Association reported that demand for aluminum in the U.S. and Canada increased by 18.3% during the first five months of 2021 compared to the previous year.

China is actively contemplating adding more curbs to halt environmental pollution which will reduce its steel output and dampen exports. It is also considering imposing more tariffs on steel exports of 10-25% on steel products.

For more information, check out the August 2021 Market Insight Guide below or contact your local sales rep.

Cd'A Metals Market Insight August 2021
Sheet Metal

July 2021 Market Insight

Economic News

The U.S. economy grew at a rate of 6.4% in the first three months of 2021. Economists believe this may be the strongest year for the economy in about seven decades. They also believe the growth this quarter will be enough to push GDP output above the previous peak reached at the end of 2019.

For the sixth straight month, the U.S. economy added back jobs. In June, the economy added back 850,000 payrolls as the unemployment rate ticked up to 5.9%. The biggest payroll gains were seen in the leisure and hospitality industries as more and more Americans get vaccinated and start to travel.

Economic Indicators

The June Purchasing Managers Index registered at 60.6%, a decrease of 0.6 points from May’s reading. However, this still indicates expansion in the overall economy for the 13th consecutive month, as any score above 50 indicates expansion.

The Architectural Billings Index for May scored 58.5, one of the highest scores ever recorded. A score above 50 indicates an increase in design billings.

Consumer Confidence improved in June with the index standing at 127.3, up from May’s revised reading of 120.0. The Present Situation Index also rose from the previous month to 157.7.

Industry News

According to the International Institute, total global aluminum production rose to 5.74 million metric tons in May. This total marked the highest level and a rise of just 6% compared to this time last year. This resulted in a 588,000 ton deficit year-to-date compared to a 1 million ton + surplus reported last year.

However, rising global output alone could be enough to cap further aluminum price hikes this year as many of the major economies get close to pre-pandemic levels of consumption. This year’s primary metal deficit could reverse towards the end of the year.

For more information, contact your local sales rep or view the July 2021 Market Insight Guide below.

Cd'A Metals Market Insight July 2021