Steel Markets

AGC: Contractors Report Labor Shortage
Written by Sandy Williams
October 30, 2019
The Associated General Contractors of America are calling for comprehensive immigration reform and additional workforce funding to address a shortage of qualified labor. Despite the widespread job gains, AGC’s latest survey found 80 percent of contractors say hourly craftworker positions remain difficult to fill.
Construction employment grew in 244, or 68 percent, out of 358 metro areas between September 2018 and September 2019, declined in 61 and was unchanged in 53, according to the association’s latest analysis of federal employment data.
“Even though construction firms in over two-thirds of the nation’s metro areas were able to add employees in the last year, our survey suggests employers in still more locations would have done so if they could find more qualified workers to hire,” said Ken Simonson, the association’s chief economist. “Job openings at construction have been at record levels in recent months, showing that contractors are still eager to hire.”
The Dallas-Plano-Irving, Texas, metro area added the most construction jobs during the past year (15,000 jobs, 10 percent). Other metro areas adding a large amount of construction jobs during the past 12 months include Phoenix-Mesa-Scottsdale, Ariz. (12,400 jobs, 10 percent); Los Angeles-Long Beach-Glendale, Calif. (10,700 jobs, 7 percent); Houston-The Woodlands-Sugar Land, Texas (7,900 jobs, 4 percent) and Nassau County-Suffolk County, N.Y. (7,500 jobs, 9 percent). The largest percentage gain occurred in Pocatello, Idaho (17 percent, 300 jobs), followed by Omaha-Council Bluffs, Neb.-Iowa (16 percent, 4,900 jobs); Auburn-Opelika, Ala. (15 percent, 400 jobs) and Spokane-Spokane Valley, Wash. (15 percent, 2,300 jobs). Construction employment reached a new September high in 64 metro areas and a new September low in three areas.
The largest job losses between September 2018 and September 2019 occurred in New York City (-3,600 jobs, -2 percent), followed by Charlotte-Concord-Gastonia, N.C. (-3,400 jobs, -5 percent); Chicago-Naperville-Arlington Heights, Ill. (-3,100 jobs -2 percent) and Baton Rouge, La. (-2,300 jobs, -4 percent). The largest percentage decrease took place in Longview, Texas (-11 percent, -1,600 jobs), followed by Fairbanks, Alaska (-9 percent, -300 jobs); Gulfport-Biloxi-Pascagoula, Miss. (-8 percent, -600 jobs); Hartford-West Hartford-East Hartford, Conn. (-8 percent, -1,600 jobs) and Evansville, Ind. (-8 percent, -800 jobs).

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.

ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.

Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]

CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.

Steel market shakes tariffs off amid weak demand
Service centers and distributors contend that weak demand is to blame for the flattening of domestic steel spot prices, as reflected in Nucor Steel’s weekly Consumer Spot Price (CSP) notice. On Monday, the Charlotte, North Carolina-headquartered steel producer left prices unchanged from the previous week. Nucor has maintained prices of plate produced in Brandenburg since March 28.