[ferro-alloys.com]Real gross domestic product (GDP) in the US increased at an annual rate of 3.5% in the third quarter of 2018, according to the "advance" estimate released Friday by the US Bureau of Economic Analysis, an unsurprising increase for those keeping a close watch on domestic steel prices.

Steel and other industrial commodities generally benefit from such a rate of economic expansion. Steel demand, for example, tends to increase substantially when GDP grows at a rate greater than 3%.

In the second quarter, real GDP increased 4.2%. And despite a tepid start in the first three months of 2018 with US GDP growth of 2.2%, growth is now averaging 3.3% in 2018 after two strong subsequent quarters.

Steel prices in the US have pointed to the broader economic upswing.

The average Q2 and Q3 price of US-made hot-rolled coil steel was about $890/st or $133 (17.57%) higher than the Q1 average price of nearly $757/st, according to S&P Global Platts data.

Early in the current quarter, however, Platts' daily assessment of HRC steel has seen some price erosion. It closed at $834.50/st Thursday, down about 6%, or $55/st from the Q3 average.

(S&P Global Platts)

• [Editor:王可]