Steel Markets
Builder Confidence Hits Record High
Written by Sandy Williams
September 16, 2020
Builder confidence was at an all-time high in September, said the National Association of Home Builders. The NAHB/Wells Fargo Housing Market Index (HMI) rose five points to 83, exceeding last month’s previous high of 78. The index is a strong signal that housing is leading the economic recovery, said NAHB.
“Historic traffic numbers have builders seeing positive market conditions, but many in the industry are worried about rising costs and delays for building materials, especially lumber,” said NAHB Chairman Chuck Fowke. “More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months.”
NAHB Chief Economist Robert Dietz said lumber prices are up 170 percent since mid-April, adding more than $16,000 to the price of the average single-family home.
“The suburban shift for home building is keeping builders busy, supported on the demand side by low interest rates,” said Dietz. “In another sign of this growing trend, builders in other parts of the country have reported receiving calls from customers in high-density markets asking about relocating.”
The HMI is composed of three indices, all of which were at their highest readings ever in September. The current sales condition index rose four points to 88, sales expectations for the next six months rose six points to 84 and the index measuring traffic of prospective buyers gained nine points for a reading of 73.
The HMI regional three-month moving average scores were: Northeast 76 (+11), Midwest 72 (+9), South 79 (+8) and West 85 (+7).
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.