Steel Markets

Case-Shiller: Home Price Growth Slows for the 12th Month
Written by Sandy Williams
May 28, 2019
The rate of growth in U.S. home prices continues to slow. The March S&P CoreLogic Case-Shiller National Home Price Index gained 3.7 percent year-over-year in March, down from 3.9 percent in February and the lowest annual gain since September 2012. The index has been on a 12-month downward trajectory, falling from a 6.5 percent annual gain in March 2018.
The 20-City Composite posted a 2.7 percent annual gain, down from 3.0 percent in the previous month. Gains were highest in Las Vegas at 8.2 percent, Phoenix at 6.1 percent and Tampa at 5.3 percent.
“Home price gains continue to slow,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The patterns seen in the last year or more continue; year-over-year price gains in most cities are consistently shrinking. Double-digit annual gains have vanished.”
Added Blitzer, “Given the broader economic picture, housing should be doing better. Mortgage rates are at 4 percent for a 30-year fixed rate loan, unemployment is close to a 50-year low, low inflation and moderate increases in real incomes would be expected to support a strong housing market. Measures of household debt service do not reveal any problems and consumer sentiment surveys are upbeat. The difficulty facing housing may be too-high price increases.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Week in Review: Sept. 29 -Oct. 3
Let’s take a quick tour of some key stories from SMU in the week of Sept. 29 - Oct. 3.

Hot-rolled coil sources lament stagnant conditions
Participants in the hot-rolled sheet market expressed frustration with the continuing lack of demand this week.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

ITC’s final ruling: Dumped, subsidized CORE imports are harming domestic market
The US International Trade Commission (ITC) finds that corrosion resistant steel (CORE) imports from 10 countries have caused material damage to domestic product producers, according to the ITC’s statement.

HR buyers report mixed market conditions
Hot-rolled coil market participants said they’re staying on their toes amid a market that continues to be characterized by uncertainty. A veteran Midwest-based service center operator contends that current conditions are unprecedentedly volatile. Being flexible with customers and strategic with mills is the only way to navigate through the uncertainty, he said. “No one wants […]