Steel Markets

Dodge Momentum Index Sees First Decline This Year
Written by Michael Cowden
July 9, 2021
The Dodge Momentum Index has fallen for the first time this year – and after six consecutive months of gains – on uneven demand and higher costs.
The index now stands at 165.8, down 5% from a revised May number of 175.1, according to Hamilton, N.J.-based Dodge Data & Analytics.
“Uncertain demand for some building types (such as retail and hotels), higher material prices, and continued labor shortages are weighing down new project planning,” the group said in a statement.
Case in point when it comes to higher costs: SMU’s benchmark hot-rolled coil price is at $1,770 per ton ($88.50 per cwt), an all-time high by a wide margin. That figure is up 80% from $985 per ton at the beginning of 2021 and more than triple $475 per ton in July of 2020, according to SMU’s interactive steel pricing tool.
“June’s retreat in planning activity is another sign that the recovery from the pandemic-led recession will be nonlinear,” Dodge said.
Despite the June dip, the Momentum Index remains near a 13-year high. It is up 41% versus June 2020 with planning for commercial construction up 39% year-over-year and that for institutional construction up 46%.
“The current level of the Momentum Index and its underlying components … continue to signal that a more broad-based recovery in nonresidential construction starts will occur in 2022,” Dodge said.
Thirteen new projects valued at $100 million or more entered planning in June, the group said.
The Dodge Momentum Index is a key advance indicator of nonresidential construction demand. The group says its planning data lead construction spending by as much as a year.
An interactive history of the Dodge Momentum Index is available here on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.

Michael Cowden
Read more from Michael CowdenLatest 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).