Steel Markets
Housing Starts Decline in May
Written by Sandy Williams
June 17, 2019
Housing starts dipped slightly in May, inching down 0.9 percent from April’s revised rate to a seasonally adjusted annual rate of 1,269,000. Starts were 4.7 percent below the May 2018 rate. Single-family starts led the decline, falling 6.4 percent from April to a SAAR of 820,000, while housing of five units or more jumped 13.8 percent to 436,000.
The South was the only region to post positive growth at 11.2 percent in May. Starts fell 45.5 percent in the Northeast, 8.0 percent in the Midwest and 2.4 percent in the West.
“The decline in single-family starts is off a solid upward revision in April,” said Danushka Nanayakkara-Skillington, National Association of Home Builders associate vice president of forecasting and analysis. “This is another indicator that ongoing builder supply-side concerns are making it more difficult to build homes at affordable price points. We expect single-family housing starts to remain flat through 2019.”
Building permit authorizations were nearly unchanged in May, gaining 0.3 percent from April, but slipping 0.5 percent from a year ago. Single-family authorizations grew 3.7 percent sequentially to a rate of 815,000, while buildings with five units or more declined 3.7 percent to a SAAR of 442,000.
Permit authorization expanded in the South and West, gaining 6.8 percent and 1.8 percent, respectively. Authorizations, however, plummeted 24.6 percent in the Northeast and fell 8.4 percent in the Midwest.
“The rise in single-family permits echoes the stabilization we are seeing in our builder confidence survey,” said NAHB Chairman Greg Ugalde. “While the increase in permits is a positive sign for the housing market, there are still affordability concerns throughout the country, especially in high-cost areas.”
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 […]