The monthly Construction MMI® registered a value of 93 in June, a decrease of seven percent from 100 in May.
The Construction MMI® had held steady since the beginning of this year, but fell this past month along with all of the other MMI® index values. The Construction MMI® baseline began on January 1, 2012, with a reading of 100. This report serves as the first public release of this data.
Source: MetalMiner IndX℠
For more commentary and the drivers of this month’s index decline, click below.
“Industry watchers, particularly those in the steel industry, tend to pay close attention to a range of indicators that relate to the overall health of the construction industry,” said Lisa Reisman, managing editor of MetalMiner. “We hope that industry watchers will consider the Construction MMI® a good proxy for the health of that sector, along with housing starts, non-residential construction starts, the Architectural Billings Index and several other economic indicators.”
“2008 and 2009 hit the construction industry very hard,” Reisman continued. “Things began to improve last year and for the first few months of this year, the metals supporting the Construction MMI® actually moved above the baseline — but like the other MMIs, prices began to fall between May and June,” said Reisman.
Drivers of this Month’s Change in the Construction MMI®
The weekly US Midwest bar fuel surcharge dropped 6.4 percent, as did the weekly US Gulf Coast bar fuel surcharge. The weekly US Rocky Mountain bar fuel surcharge, meanwhile, closed the month after dropping 4.3 percent.
The Chinese low price of 62% Australian iron ore fines fell six percent. Chinese rebar finished the month after a 5.5 percent fall, while the price of Chinese H-beam steel fell 4.8 percent. Finally, over the last month, US shredded scrap prices dropped by 0.9 percent.
Chinese aluminum bar traded sideways last month, staying above $2,200 per metric ton. The price of European 1050 aluminum held steady as well, above $3,000 per metric ton.
The Construction MMI® collects and weights 9 metal price points used within the construction industry to provide a unique view into construction industry price trends over a 30-day period. MetalMiner will publish the monthly MMI® reports during the first week of the month, every month. Paid subscribers have access to all the data on the first of the month and can also obtain the actual price points for constituent elements that comprise the Construction MMI®.
For more information on the Construction MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.