US metals indicators suggest growth in activity

Figures from the US Geological Survey show the primary metals leading index moving up 1.6% in June, climbing to 125.9 from 123.9 in May.
The index is seen as a useful barometer of the US economy and the USGS says that generally “a growth rate above +1% signals an upward near-term trend for future growth in metals activity, while a growth rate below -1% signals a downward trend.”

And, while not all the components of the index were available for May at the time the indicators were published, the USGS gives a positive note, commenting that the growth of the leading index does suggest that growth in overall US primary metals activity may begin to turn up by the end of the year.

It reasons that there were strong increases in the length of the average workweek in primary metals establishments and despite a slight decline in the aluminium mill products index, the latter was still signalling modest growth. US steelworks could see a recovery starting in the second half of 2001 says the survey.

UK exports of scrap metal to the USA totalled 37,881 tonnes in May 2001 according to the Iron and Steel Statistics Bureau. This figure is close to the average for the first five months of this year which stands at 39,000 tonnes. The average is down on last year’s 46,900 tonnes per month and also well down on the high 1999 monthly average UK to the US export figures of 70,000 tonnes of scrap.