According to the June 8^th China Metals Weekly (CMW) newsletter, prices moved-up for three of the five long product groups for the week ending June 7^th.

For the week ending June 3^rd, production was 1,749,000 tons at a 75.0% capacity utilization, 1.3 points higher than the year to date (YTD), average.  For the first 22 weeks of 2017, US steel production averaged 1,735,000 tons per week at an average capacity utilization rate of 73.7%.

The BDI average for May was 976. Year to date (YTD), the index has averaged 1,003. In the same period last year the BDI average was 457.

The overall summary is that; the economy continues to expand across most of the nation at a modest to moderate pace. Tight labor markets are reducing the rate of hiring and causing wages to rise.

Wire rod licenses in May totaled 55,298 tons, down 68.8% from last month’s 177,378 tons and YTD average of 145,402 tons. Year to date (YTD), there have been a total of 727,013 tons of wire rod license requests, down 91,222 tons or 11.1% from YTD 2016.

Merchant licenses for May totaled 26,319 tons, down 71.4% from last month’s 92,199 tons and down 67.3% from last year’s May license total of 80,369 tons.