Steel Markets
Housing Starts Show Steady Improvement
Written by Sandy Williams
December 27, 2019
Housing starts increased 3.2 percent in November to a seasonally adjusted annual rate of 1,365,000. Starts were 1.36 percent above the November 2018 rate. Commencement of construction for single-family homes increased 2.4 percent from October, while starts for buildings of five units or more increased 2.3 percent.
New construction was strongest in the South with single-family starts up 10.3 percent, followed by an increase of 1.4 percent in the West. Starts were down 3.7 percent in the Northeast and 15.5 percent in the Midwest.
“Since the rebound in housing took hold earlier this year, single-family starts have posted a steady improvement in the pace of construction,” said NAHB Chief Economist Robert Dietz. “Under the current estimates, the 2019 year-to-date total for single-family construction is just 0.4 percent lower than the 2018 sum and is on pace to come in relatively flat for the year.”
Permit authorizations in November increased 1.4 percent from October to a SAAR of 1,482,000. Single-family authorizations edged up 0.8 percent, while multi-family units gained 4.4 percent. Permits in the Northeast and Midwest leapt 18.1 percent and 15.1 percent, respectively. Authorizations grew 1.3 percent in the West and declined 4.7 percent in the South from the previous month.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Steady architecture billings signal improving conditions
The November ABI decreased month over month but was still the third-highest reading of the past two years.
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Slowing data center, warehouse planning drives decline in Dodge index
The Dodge Momentum Index (DMI) slid further in November as planning for data centers and warehouses continued to decline.
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.