Steel Markets
Housing Construction Slowed by Coronavirus
Written by Sandy Williams
April 16, 2020
Housing starts plummeted 22.3 percent in March to a seasonally adjusted annual rate of 1,216,000, according to new data from the U.S. Census Bureau and Department of Housing and Urban Development. Single-family starts declined 17.5 percent and multifamily starts of five units or more plunged 32 percent.
“Single-family starts began an expected, virus-related decline in March,” said National Association of Home Builders Chief Economist Robert Dietz. “Construction activity is expected to fall as virus mitigation efforts result in increased unemployment, economic uncertainty and lost business activity.”
Housing starts fell by double digits across all regions with the Northeast hit the hardest, falling 42.5 percent on a month-over-month basis. Construction of single-family homes plummeted in three regions, but gained 6.1 percent in the West compared to the previous month.
Construction starts fell in March despite the majority of states allowing home building to continue during the pandemic as an essential business activity.
Building permit authorizations also slipped in March, falling 6.8 percent from February to a SAAR of 1,353,000. Permit authorizations for single-family homes dropped 12 percent, but permits for buildings of five units or more rose 5.2 percent.
Regional month-over-month authorizations fell across the board, but on a yearly basis increased in the South and West.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CRU: Global sheet prices remain under pressure as exporters undermine domestic markets
One cause of this was increased competitiveness from imports that have put pressure on some domestic producers.
CRU: Sheet import demand softens as domestic price gains have slowed
US domestic sheet price gains have begun to slow as previously pulled-forward demand has led to a decline in orders.
CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.