Currency Report: The trade-weighted U.S. Broad Dollar Index posted a reading of 120.806 in March, up 0.41% m/m, steadily increasing for the second month. This index value is up 3.77% on a year on year (y/y) basis. Month over month, we saw the Euro, the Indian rupee, and the Mexican peso strengthen vs. the USD in March.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending March 31st was 58 oil and 81 gas (totaling 139). In percentage terms, on a month on month (m/m) basis, oil rigs were down 63.3% and gas down 8.0%. On a year on year (y/y) comparison, rigs were down 9.4% for oil and up 35.0% for gas. The combined figure for y/y was +12.1% or 15 rigs.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending March 31st was 592 oil and 160 gas (totaling 752). In percentage terms, on a month on month (m/m) basis, oil rigs were flat, and gas was up 3.9% On a year on year (y/y) comparison, rigs were up 11.1% for oil and up 15.9% for gas. The combined figure for y/y was +12.2%, or +82 rigs.

Employment by Industry (U.S.): In March 2023, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 155.6 million (M) – an increase of 236,000 (+0.2%) month on month (m/m). When compared to March 2022, total employment is up by 2.7% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest monthly gain in the heavy and civil engineering construction sector with a growth of 0.6% m/m.

Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand decreased 0.1% in February 2023 (seasonally adjusted), following the 0.3% increase in January. The index for final demand goods fell 0.2% in February, while the index for final demand services inched down 0.1%, the same as in January. A major factor in the February decrease in prices for final demand services was margins for machinery and vehicle wholesaling, which fell 3.9 percent.

Crude Oil & Natural Gas Pricing: February’s average West Texas Intermediate (WTI) crude oil price per barrel decreased 2% month on month (m/m). The WTI is down 16% year on year (y/y), coming in at $76.83 / barrel in February 2023 vs. $91.64 / barrel in February 2022.