Steel Markets
Housing Starts Surge in October
Written by Sandy Williams
November 17, 2017
Housing starts leapt 13.7 percent from September to October, rising to a seasonally adjusted rate of 1.290 million and beating economists’ estimates. Single-family housing starts increased 5.3 percent, while housing of five units or more jumped 37.4 percent, reported the Commerce Department.
Data shows the South rebuilding after the devastation of the dual hurricanes earlier this year. After declining in September, starts jumped 17.2 percent in the region and permit authorizations 3 percent.
The Northeast posted a 42.2 percent gain in housing starts, mostly due to multi-family construction. Starts in the Midwest rose 18.4 percent, but declined 3.7 percent in the West.
Permit authorizations jumped 5.9 percent from September to a seasonally adjusted annual rate of 1,297,000. Single-family authorizations increased 1.9 percent month-over-month to a rate of 839,000. Authorizations of units in buildings with five units or more jumped 13.4 percent to a rate of 416,000 in October. Seasonal declines were seen in the Northeast and Midwest, while the permit authorizations rose 13 percent in the West.
October’s housing report coincides with a surge in builder confidence for newly-built single-family homes. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) in November rose to its highest level since March and the second highest since July 2005.
“Demand for housing is increasing at a consistent pace, driven by job and economic growth, rising homeownership rates and limited housing inventory,” said NAHB Chief Economist Robert Dietz. “With these economic fundamentals in place, we should see continued upward movement of the single-family housing market as we close out 2017.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
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.
Hot-rolled price hikes garner mixed reactions from the market
Several steel market sources say they were blindsided when mills increased spot prices for hot-rolled coils this week.
Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.