Steel Markets

Housing Starts Gain 2.1 Percent in July
Written by Sandy Williams
August 15, 2016
Housing starts increased 2.1 percent in July to a seasonally adjusted annual rate of 1,211,000 from a revised June estimate of 1,186,000, according to data from the U.S. Census Bureau and Department of Housing and Urban Development. The increase was the highest level since February. Starts were 5.6 percent above the July 2015 rate.
Multi-family starts outpaced single family, rising 8.3 percent from June. Single family starts increased 0.5 percent from the previous month. On a year over year basis single family starts were up 1.3 percent while structures with five units or more gained 15.2 percent.
Permit authorizations, an indicator of future construction, were nearly the same as last month, inching downward 0.1 percent to a SAAR of 1,152,000 units. Permits were 0.9 percent above the July 2015 estimate.
Authorization of permits for single family housing were at a rate of 711,000, 3.7 percent below the revised June rate. Multi-family structures of five units or more increased 6.5 percent from June.
A joint economic forecast released Monday by the Associated Builders and Contractors, American Institute for Architects and National Association of Home Builders expects gradual expansion of the residential construction sector.
“Our forecast shows single-family production expanding by more than 10 percent in 2016, and the robust multifamily sector leveling off,” said NAHB Chief Economist Robert Dietz. “Historically low mortgage interest rates and favorable demographics should keep the housing market moving forward at a gradual pace, but residential construction growth will be constrained by shortages of labor and lots and rising regulatory costs.”
AIA, Chief Economist Kermit Baker concurs, “Revenue at architecture firms continues to grow, so prospects for the construction industry remain solid over the next 12 to 18 months. Given current demographic trends, the single-family residential and the institutional building sectors have the greatest potential for further expansion at present.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Metalforming manufacturers predict stagnant market: PMA Business Conditions Report
Most of the surveyed US and Canadian metalforming manufacturers expect general economic activity to remain steady over the next three months.

CRU: Global sheet prices remain under pressure as exporters undermine domestic markets
One cause of this was increased competitiveness from imports that have put pressure on some domestic producers.

CRU: Sheet import demand softens as domestic price gains have slowed
US domestic sheet price gains have begun to slow as previously pulled-forward demand has led to a decline in orders.

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.