Each week we share a look at a few of the bigger numbers and trends affecting our business — steel, oil, and infrastructure funding — and what they mean for our customers.
Steel
Another $10 increase. Nucor moved hot-rolled coil to $1,210/ton on September 22, with its West Coast joint venture up to $1,270. That’s roughly 38% higher than this time last year, when Nucor’s price sat at $875. Fall mill maintenance outages are tightening what’s available on the spot market right now, so buyers are competing for the tons that are out there. Nothing this week points to that easing up.
Oil
A split week between the benchmarks. Brent settled Friday at $104.32, basically flat for the week, while WTI dropped about 8% to $92.41 — its first weekly decline since late August. ANS held up better, closing Friday at $108.68, tracking closer to Brent than to WTI. Growing hope for a U.S.-Iran path back to a truce (Iran has floated reopening the Strait of Hormuz and resuming nuclear talks if its conditions are met) pulled WTI down, while continued Houthi attacks on Saudi Arabia are keeping a premium on the international and Alaska benchmarks. For perspective, Brent was still in the low $70s at the end of June.
Infrastructure
September 30 was the deadline for federal highway and transit funding, and it’ll pass quietly. The stopgap extension signed into law September 2 carries that funding through December 11. Core highway formula money is steady. The extension didn’t renew the advance appropriations behind several grant programs, so those are working with less in the meantime. Congress is still negotiating a longer-term bill, and December 11 is the next date to watch.
Bottom line
Steel keeps inching up on tight supply, oil is being pulled in two directions by the Iran talks and the Saudi attacks, and federal funding is stable for now. If you’d like to talk through what any of this means for your project, reach out to your Greer Tank representative.