Steel Markets

Construction Spending Declines in December
Written by Sandy Williams
February 4, 2020
Construction spending slowed in December, but contractors remain optimistic about new projects for 2020.
Construction spending dipped 0.2 percent from November to December due to a decline in nonresidential project spending. A 1.4 percent jump in private residential spending, supported by a 2.7 percent increase in single-family home construction, failed to offset a decline in nonresidential spending in December, said the Associated General Contractors of America in an analysis of newly released data.
Construction spending totaled $1.328 trillion at a seasonally adjusted annual rate in December, a decrease of 0.2 percent from November but a gain of 5.0 percent from December 2018, according to estimates by the U.S. Census Bureau. Nonresidential construction spending slipped 1.8 percent in the private sector and 0.4 percent in public construction.
Spending in 2019 totaled $1.303 trillion, down 0.3 percent from 2018. Private nonresidential spending declined 4.7 percent, private nonresidential spending was flat, and public construction spending increased 7.1 percent.
“Both the actual spending totals for December and our members’ expectations for 2020 point to a positive year for all major categories of construction,” said Ken Simonson, the association’s chief economist. “Continuing job gains throughout the nation, along with low interest rates, make a good year for residential construction especially likely, while spending in many nonresidential categories should match or exceed 2019 levels.”
AGC continues to urge Congress and the Trump administration to approve new infrastructure spending plans.

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 […]