Steel Markets
Construction Spending Rises 0.1% in December
Written by Sandy Williams
February 4, 2014
Construction spending inched up 0.1 percent in December and picked up a modest 4.8 percent for all of 2013. Apartments and single-family homes offset declines in private nonresidential and public projects, according to US Census Bureau data analyzed by the Associated General Contractors of America (AGC).
The AGC reported: “Construction put in place totaled $930 billion in December, 0.9 percent higher than the November total, which was revised down $5 billion from the initial estimate. For 2013 as a whole, spending was 4.8 percent above the 2012 level, a slowing from the 9 percent gain that year. Private residential construction spending increased by 2.6 percent in December and jumped 18 percent for all of 2013. Private nonresidential spending dipped 0.7 percent for the month and 0.4 percent for the full year. Public construction spending dropped 2.3 percent for the month and 2.8 percent for the year.”
Expansion of activity in the oil and gas sector should boost construction for private nonresidential building. Ken Simonson, the association’s chief economist, commented, “Many regions will experience more work on pipelines, railroads, manufacturing plants, and even fueling facilities for trucks and buses that convert to natural gas. In addition, communities in the drilling areas will get more housing, hotels and retail projects. As a result, private nonresidential spending should grow at a 6-10 percent rate in 2014 overall.”
Private residential construction, particularly single-family housing, is expected to slow in growth but increase overall by 10 percent in 2014. Public construction spending, says Simonson, will match or be below 2013 levels.
Infrastructure construction, such as highway and streets, grew 1.8 percent in December and was up by 1.0 percent for the full year. But AGC warns that federal funding for highway and transit projects may drop when the law supporting projects expires in September. AGC encourages Congress to act on legislation to authorize river, harbor and flood-control infrastructure.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Glenfarne Alaska LNG and POSCO ink preliminary partnership
Glenfarne Alaska LNG and POSCO signed a preliminary strategic agreement during the GasTech Conference in Milan on Thursday.
Steel export volumes remain weak through July
Following a 3% decline in June, the amount of steel shipped outside of the US edged up 1% in July to 623,000 short tons. July was the sixth-lowest monthly export rate since the COVID-19 pandemic, and...
Hot-rolled market participants say ‘doldrums’ to roll on through year-end
Participants in the hot-rolled steel sheet market expect the market to remain subdued through the end of the year.
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
Great Lakes iron ore shipments declined in August
Shipments of iron ore across the Great Lakes dropped to 5 million short tons (st) in August, according to the latest data from the Lake Carriers’ Association. That’s down 9.1% compared to August 2024 and 2% lower than the month’s 5-year average. All told, the year-to-date (YTD) iron ore volumes through August totaled 26.7 million […]