Steel Markets
Housing Starts Beat Expectations in July
Written by Sandy Williams
August 19, 2014
Housing starts accelerated in July to a seasonally adjusted annual rate of 1,093,000, up 15.7 percent from the previous month and 21.7 percent above the July 2013 SAAR, according to reports by the Commerce Department. Single family housing starts were up 8.3 percent from June while starts of multi-family housing of 5 units or more rose 33 percent.
Housing starts in July were higher than the 969,000 predicted by economists polled by Reuters.
“July’s increase in starts combined with rising builder sentiment proves that June’s production dip was more of an anomaly than a reversal of the market,” said National Association of Home Builders Chief Economist David Crowe. “We should continue to see a gradual, consistent recovery throughout the rest of the year.”
Building permit authorizations increased 8.1 percent to a SAAR of 1,052,000. The July rate was 7.7 percent higher than the rate in July 2013. Single family authorizations were up 0.9 percent from June while authorization for housing of five units or more increased 23.6 percent
Housing completions for privately-owned housing were at a seasonally adjusted annual rate of 841,000, up 3.7 percent from the previous month, and 8.0 percent from the previous year. Single family housing completions rose 6.2 percent from the previous month. Multi-family housing completions fell 4.3 percent from June.
Gains for combined housing starts in the Northeast, South and West increased by 18.8 percent, 9.6 percent and 7.2 percent, respectively, over June rates. The Midwest saw a 0.6 percent decline in housing starts.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.
Steel market shakes tariffs off amid weak demand
Service centers and distributors contend that weak demand is to blame for the flattening of domestic steel spot prices, as reflected in Nucor Steel’s weekly Consumer Spot Price (CSP) notice. On Monday, the Charlotte, North Carolina-headquartered steel producer left prices unchanged from the previous week. Nucor has maintained prices of plate produced in Brandenburg since March 28.
SMU’s May at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through May 30.