Steel Markets

Canadian Construction Growth Softening
Written by Sandy Williams
May 10, 2014
Building permit values in Canada decreased for the second consecutive month, falling 3 percent in March after an 11.3 percent decrease in February. Value of building permits totaled $6 billion. The decrease in building permit values surprised economists at Royal Bank of Canada who expected a 4 percent rebound in March. A plunge in non-residential sector permits more than offset a gain in the residential sector, according to data from Statistics Canada.
In the residential sector, building permits were authorized for 15,833 new dwellings, an increase of 12.2 percent from February. Multi-family units led the increase, jumping 21.2 percent to 10,191 units. Single family dwellings fell 1.2 percent to 5,642 units. The value of residential permits rose 1 percent to $3.7 billion after a steep decline of 20.8 percent in the previous month. Multi-family permit values reversed course after falling 30.7 percent in February, registering a 7.9 percent increase in March. Permit values for single family dwelling decreased for the fourth time in five months, sliding 3.6 percent to $2.1 billion.
Selling prices for new homes in Canada increased by 0.2 percent in March after climbing the same amount in February. The largest monthly gain was in the Calgary region where higher material and labor costs, market conditions and cost of developed land led to a 0.8 percent increase. Pricing in other metropolitan regions in Canada was mixed with higher prices reported in St. John’s, Halifax, Hamilton and Winnipeg and falling prices in five other metropolitan regions in March.
In the nonresidential sector, $2.3 billion of building permits were authorized in March, a decline of 8.8 percent, following a 7.4 increase in February. Institutional permit values fell 31.3 percent and commercial permit values rose 1.2 percent in March. Industrial permit values fell 7.7 percent after a 29.7 percent increase in February.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.

US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.

Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.

Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]

HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).