Steel Markets

Housing Starts Rebound in January
Written by Sandy Williams
March 8, 2019
Housing starts jumped 18.6 percent in January to a seasonally adjusted annual rate of 1.23 million, says a delayed report from the U.S. Census Bureau and Department of Housing and Urban Development. The increase was higher than the single-digit rise expected by economists.
Single-family starts soared 25.1 percent from December to a rate of 926,000. Multifamily starts for buildings with five units or more climbed 4.0 percent to a rate of 289,000.
Regionally, combined starts in January fell 5.7 percent in the Midwest, but rose 58.5 percent in the Northeast, 29.3 percent in the West and 13.8 percent in the South.
Building permit authorizations, a measure for future construction, edged up 1.4 percent from December to a SAAR of 1.345 million. Single-family permits declined 2.1 percent and multifamily authorizations increased 4.8 percent.
Regional permit data showed permits rose 33.1 percent in the Midwest and 26.4 percent in the Northeast. Permit authorizations fell 8.9 percent in the West and 3.5 percent in the South.
“The bounce back in single-family starts mirrors our builder confidence surveys, as sentiment fell in the latter part of 2018 but rebounded in January after mortgage rates showed a notable decline,” said National Association of Home Builders Chairman Greg Ugalde.
“Some single-family projects that were on pause in December, meaning they were authorized but not started, went online in January. However, builders remain cautious as single-family permit numbers in January were somewhat soft,” said NAHB Chief Economist Robert Dietz.
Weak December starts were likely due to a “combination of weather effects and homebuilders’ nervousness as the stock market tanked,” said Ian Shepherdson, Pantheon Macro chief economist.
“New-home sales are now picking up, and the mortgage applications data point to further gains ahead, so single-family construction should creep higher. The multifamily numbers are wild, but the trends are flat,” said Shepherdson.
“Housing isn’t booming, but neither is it rolling over, and it isn’t going to drag down the rest of the economy.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Sheet market participants say sales still in a slump
Across the US and throughout the steel supply chain, market participants are reporting another painfully quiet week for hot-rolled (HR) coil sales.

CRU: Lower sheet prices have pulled back demand for imports
Domestic sheet prices in the US remained under pressure, limiting interest in imports, while domestic prices for longs products continued to rise.

President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.

USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.