The monthly Construction MMI® registered a value of 91 in July, down 2.2 percent from June’s reading of 93.
Every component within the Construction MMI® fell this past month with the exception of two — Chinese aluminum bar and 62% Australian iron ore fines destined for China. MetalMiner has previously written about the price direction for iron ore within the Chinese market.
Source: MetalMiner IndX(SM)
“Nearly all of the components comprising the Construction MMI® fell — some only slightly, however, which tells us that the global construction industry remains somewhat challenged within the current global economic environment,” said Lisa Reisman managing editor of MetalMiner.
Drivers of this Month’s Change in the Construction MMI®
Chinese 62% Australian iron ore fines crept up a few dollars per dry metric ton, as did Chinese aluminum bar prices.
The price of US shredded scrap closed the month down 14 percent. For the second month in a row, the weekly US Midwest bar fuel surcharge declined, falling 9 percent over the past month. The weekly US Gulf Coast bar fuel surcharge fell 10 percent over the past month, the second straight month of declines. The weekly US Rocky Mountain bar fuel surcharge declined 10 percent over the past month.
The price of European 1050 aluminum dropped 4.6 percent. The price of Chinese H-beam steel finished the month 1.1 percent lower. This was the second straight month of declines for Chinese H-beam steel. The price of Chinese rebar fell 0.5 percent.
Chinese aluminum cash prices crept up slightly.
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. 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.