Steel Markets

Existing Home Sales Rebound in January
Written by Sandy Williams
March 22, 2019
Existing home sales jumped 11.8 percent in February for its largest month-over-month gain since December 2015. The seasonally adjusted annual rate rose to 5.51 million, strongly rebounding from January, said the National Association of Realtors. Sales compared to a year ago were down 1.8 percent.
“A powerful combination of lower mortgage rates, more inventory, rising income and higher consumer confidence is driving the sales rebound,” said NAR chief economist Lawrence Yun.
Mortgage rates climbed through the bulk of 2018, putting purchases out of range for some buyers. In December, rates began to fall and were down to about 4.5 percent in January, encouraging buyers to re-enter the market.
Inventory increased to 1.63 million units from 1.59 million units in January and 1.58 million in 2018. The February inventory represents a 3.5-month supply at the current sales rate.
Yun said inventory levels still have room for improvement. “For sustained growth, significant construction of moderately priced homes is still needed. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can join in housing wealth gains.”
The median sales price for all housing types continued to rise in February for the 84th consecutive month, up 3.6 percent from last year to $249,500.
Single-family home sales rose from January’s total SAAR of 4.36 million to 4.94 million. Median price rose 3.6 percent year-over-year to $251,400.
Condos and co-ops sold at a SAAR of 570,00 units, unchanged from January and down 5.0 percent from a year ago. Median price rose 3.1 percent to $233,300.
Sales rose in the Midwest, South and West in February, but were unchanged in the Northeast.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

USW cheers Evraz NA agreement with Atlas Holdings
The United Steelworkers (USW) labor union celebrated recent news of the signed agreement between Atlas Holdings and Evraz NA in which the Connecticut-based private equity company said it plans to acquire North America’s Evraz facilities.

Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.

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.