Steel Markets
Housing Starts Slide in March
Written by Sandy Williams
April 19, 2016
Housing starts plummeted in March, according to Commerce Department data. Housing starts fell 8.8 percent to a seasonally adjusted annual rate of 1,089,000, well below economist projections. Housing permit authorizations also declined in March by 7.7 percent, indicating a cooling of momentum during the housing construction market’s busiest season.
Single family housing starts were at rate of 764,000 and 9.2 percent below February’s revised estimate. Single-family permit authorizations dropped 1.2 percent from February.
Construction of structures with five or more units also declined, dropping 8.6 percent from February. Permit authorization for the category fell 20.6 percent from the previous month.
Regionally, total housing starts increased in the Northeast by 61.3 percent but fell by double digit percentages in the Midwest and West and by 8.4 percent in the South. Single family housing starts slid in all four regions. Likewise permit authorizations fell in all four regions.
The slump in housing data goes along with an unchanged index for home builder sentiment in April. Builder confidence for the single family housing sector was at 58 for the past three months, indicating a slow but consistent recovery for the sector.
“Single-family starts are off from their strong showing in February but this slowdown represents a return to a long-run, gradual growth trend that is consistent with builder confidence levels, which are overall positive,” said NAHB Chief Economist Robert Dietz. “While we are also seeing a monthly decline on the multifamily front, multifamily construction is expected to level off at a solid rate given the high level of rental housing demand.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Latin America’s steel industry grapples with declining demand, rising imports
With climbing imports and falling consumption, the Latin American steel industry has had a challenging 2024, according to an Alacero report.
CRU: Trump tariffs could stimulate steel demand
Now that the dust has settled from the US election, as have the immediate reactions in the equity, bond, and commodity markets, this is a prime opportunity to look at how a second Trump presidency might affect the US steel market.
HVAC shipments slip in September but are still trending higher
Following a strong August, total heating and cooling equipment shipments eased in September to a five-month low, according to the latest data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
GrafTech Q3 loss widens as electrode demand remains soft
GrafTech International’s third-quarter net loss increased from last year, with the company anticipating continuing weakness in near-term demand for graphite electrodes.
Cliffs forecasts 2025 rebound after Q3’s weakest demand since Covid
The negative impact of high interest rates on consumer behavior, particularly in the automotive and housing sectors, was the primary driver of the demand weakness seen across the third quarter, according to Cleveland-Cliffs executives.