Steel Markets

New Home Sales Plummet in October
Written by Sandy Williams
November 29, 2018
Sales of new single-family homes dropped 8.9 percent to a seasonally adjusted annual rate of 544,000 from an upwardly revised September estimate of 597,000 units, according to the latest data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. October sales were at the lowest sales pace since December 2016 and were 12.0 percent below October 2017.
The median sales price of new houses sold in October was $309,700 and the average sales price was $395,000. An estimated 336,000 new homes were for sale at the end of October, a supply of 7.4 months at the current sales rate. The supply is well over the accepted market balance of six months, as well as at the highest supply level since February 2011.
“The November reading is consistent with reports from our builders, who say that the job market and demographic tailwinds bode well for housing demand, but rising interest rates and home prices are forcing customers to take a pause,” said Randy Noel, chairman of the National Association of Home Builders. “Policymakers should see this drop in sales as an indicator that housing affordability will continue to slow down the market.”
Sales declined sharply in all four regions, tumbling 22.1 percent in the Midwest, 18.5 percent in the Northeast, 7.7 percent in the South and 3.2 percent in the West. Notably, sales were at their lowest level in the Northeast since September 2015 and at a two and one-half year low in the Midwest. New home sales in the South were at their lowest level since July of last year.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Worldsteel: Global steel demand flat, but modest rebound forecast for 2026
The World Steel Association (worldsteel) Short Range Outlook for global steel demand predicts that 2025’s steel demand will clock in at the same level as in 2024. In its October report, the Brussels-based association stated that this year’s steel demand will reach ~1,750 million metric tons (mt). The organization forecasts a 1.3% demand rebound in 2026, pushing […]

CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...

Great Lakes iron ore cargoes down in September as Cleveland tonnage slips
Iron ore shipments from US Great Lakes ports fell sharply in September, per the latest from the Lake Carriers’ Association (LCA) of Westlake, Ohio.

HVAC equipment shipments down through August
Although total HVAC shipments fell in August, YTD volumes remain relatively strong. Nearly 15 million units were produced in the first eight months of the year, the fourth-highest rate in our 19-year data history.

Sheet market sources slam tariffs for prolonged demand slump
Tariffs are ultimately to blame for stagnant demand in the hot-rolled coil market, domestic market sources tell SMU.