Steel Markets
Housing Starts Improve, But Permits Lackluster
Written by Sandy Williams
May 16, 2019
Housing starts jumped 5.7 percent in April to a seasonally adjusted annual rate of 1,235,000, said the Department of Commerce in its latest report. Single-family starts led the way with a 6.2 percent increase, while homes of five units or more increased 2.3 percent. Starts soared by 84.6 percent in the Northeast and 42 percent in the Midwest, but declined by just over 5 percent in the South and West.
Permit authorizations increased less than 1 percent in April. Permits were at a SAAR of 1,296,000, a 0.6 percent increase from March, but were 5.0 percent below the April 2018 level. Single-family permit authorizations declined 4.2 percent from March to 782,000, while multi-family permits of five units or more jumped 7.1 percent. Permit authorizations fell in the Northeast and South, but increased 2.2 percent in the Midwest and 5.3 percent in the West.
“Though an overall encouraging report for the month of April, the soft permit numbers for single-family housing indicate concerns about housing affordability and construction costs,” said National Association of Home Builders chief economist Robert Dietz. “Builders continue to focus on managing home construction costs as they try to meet growing housing demand. NAHB analysis of first-quarter permit data show growth in more affordable exurban locations.”
Builder confidence for newly built single-family homes, as measured by the NAHB, was at its highest level since October 2018. The Index rose 3 points to 66 in May on the Home Builders/Wells Fargo Housing Market Index (HMI).
“Builders remain cautious due to affordability concerns,” said NAHB Chairman Greg Ugalde. “But as our builder confidence survey shows, their expectations indicate consumers will respond to lower interest rates moving forward and the housing market will continue on a slow, steady climb.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Drilling activity slows in US but picks up steam in Canada
Oil and gas drilling in the US slowed for a third consecutive week, while activity in Canada hovered just shy of the 19-week high reached two weeks prior.
SMU Survey: Buyers remain leery of tariffs, but more see reshoring happening
This week’s SMU survey reveals that a growing number of steel market participants are weary of tariffs and are awaiting evidence of progress reshoring. At the start of 2025, now-second-term President, Donald Trump, pronounced that his plan to implement tariffs would result in increased revenue for the US.
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
Plate prices slip even as mills officially keep tags unchanged
US plate market participants are not fazed by the constricted nature of the current spot market pricing environment. Right now, they said, mill’s choosing to hold prices from one month to the next makes sense because service centers remain amply supplied and demand is stable. Modest upticks or slips in prices are aligned with most of the participants' expectations right now.
Still no cure for the summertime HR market blues
Seasonal steel slowdowns combined with ongoing anxieties about tariffs and mill strategies have dampened sentiment for several hot-rolled steel market participants this week. Buyers are jittery, market stands still The operator of a Midwest-based service center said that steel buyers are scared. “Everyone is afraid to buy steel right now. Unless you’re on a […]