Steel Markets

Home Sales Start Strong in January
Written by Sandy Williams
February 21, 2020
Existing-home sales started the year strong at a seasonally adjusted rate of 5.46 million in January. Sales slipped 1.3 percent from December, but were up 9.6 percent from a year ago.
“The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales,” said Lawrence Yun, chief analyst for the National Association of Realtors.
The median existing-home price increased 6.8 percent from January 2019 to $266,300. Inventory levels in January were at the lowest level since 1999 at 1.42 million units. Inventory increased 2.2 percent from December, but was down 10.7 percent from a year ago. Unsold inventory is at a 3.1-month supply at the current sales price.
“Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth,” Yun said.
Sales of both single-family homes and existing condos and co-ops dipped from December, but were up 9.7 percent and 8.9 percent from a year ago. The median price for existing single-family homes increased 6.9 percent year-over-year to $268,600. Median price for condos increased 5.7 percent to $248,100 in January.
Compared to December, sales in the Midwest and South grew 2.4 percent and 0.4 percent, the Northeast was unchanged, and sales in the West declined 9.4 percent. Median home price increased across all regions and was strongest in the Northeast with an 11.5 percent annual gain.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

USW cheers Evraz NA agreement with Atlas Holdings
The United Steelworkers (USW) labor union celebrated recent news of the signed agreement between Atlas Holdings and Evraz NA in which the Connecticut-based private equity company said it plans to acquire North America’s Evraz facilities.

Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.

Hot-rolled coil buyers continue seeking certainty
Steel market participants contend that buyers will remain in “wait-and-see" mode until some market stability is restored.

Latin American steel advocates warn on cheap import flood
Subsidized Chinese steel imports and cheap steel products from Association of Southeast Asian Nations (ASEAN) entering Latin American (LATAM) are threatening the region's steel market.

CRU: Steel prices fall amid global demand weakness
The forceful headwinds bearing down on steel markets across the globe have created demand challenges and sent prices southward. The US, however, challenged the global trend.