Caterpillar Sees Low Results, Cuts 2014 Forecast; Chinese H-beam Steel Rises 2.1%

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Caterpillar Inc is feeling some stress. The company “posted a lower-than-expected quarterly profit on Wednesday and cut its full-year forecast for the third time as weak demand from mining customers continued to bedevil the heavy equipment maker,” reports Reuters.

Caterpillar “also provided its first forecast for 2014 sales, saying it expects essentially flat results to up or down 5 percent compared with 2013…[Also noting they] had eliminated 3,000 jobs during the third quarter and warned that further workforce reductions were possible.”

The week’s biggest mover on the weekly Construction MMI® was the price of Chinese H-beam steel, which saw a 2.1 percent increase. This comes on the heels of a 2.6 percent decline the week prior. Following a 0.6 percent increase in the week prior, the price of Chinese rebar fell 0.6 percent last week. The price of US shredded scrap fell 0.3 percent after rising 0.3 percent the week before. The Chinese low price of 62% Australian iron ore fines remained essentially flat.

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Chinese aluminum bar traded sideways last week. Prices for European 1050 aluminum remained constant.

Note: Prices for bar fuel surcharges were unavailable since the beginning of the government shutdown, but have now been updated.

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The weekly US Rocky Mountain bar fuel surcharge declined after drifting 1.9 percent since last week. The weekly US Gulf Coast bar fuel surcharge fell 1.5 percent for the week. The weekly US Midwest bar fuel surcharge closed last week after a 1.2 percent drop.

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. 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.