PMI Readings For U.S. Metals Users Improve, But Global Metrics Stagnate

What happens abroad impacts MSCI members in North America. Here is the latest economic, trade, and other policy news of note for the last week:

• The United Kingdom’s (UK) Trade Remedies Authority (TRA) has initiated a Tariff Rate Quota (TRQ) review of steel imports that will assess whether the tariff rate quotas for Russia and Belarus should be re-allocated to avoid a potential shortage of steel in the UK. According to the TRA, exporters from Russia and Belarus may not be able to fulfil their quotas because the UK has imposed sanctions on imports from these countries, including steel. Reallocating the Russian and Belarus quotas could help ensure a regular supply of steel needed for end use markets. Read more here.
• The S&P Global Steel Users purchasing managers’ index (PMI) indicated broader headwinds for growth. Both production and demand contracted with demand declining at the sharpest rate since May 2020 due to a decrease in international demand and supply pressures stemming from China’s renewed COVID-19 restrictions and the Russia-Ukraine war. Read the full report here.
• The S&P Global Aluminum Users PMI fell from 51 in February to 50 in March, signaling stagnation in the sector. There was a faster drop among Asia-based firms and European firms saw their softest expansion in 16 months. In contrast, U.S. firms saw operating conditions improve at their quickest pace since last September, however. Read the full report here.
• The S&P Global Copper Users PMI fell to 50.4 in March from 50.8 in February. The reading pointed to a fractional improvement in the health of the sector. The United States saw the quickest expansion in business conditions for seven months while growth at European and Asian firms eased. Read the full report here.