Steel Markets
Dodge Momentum Index Suggests Modest Construction Recovery in Q3
Written by Sandy Williams
June 5, 2020
The Dodge Momentum Index was nearly unchanged at 129.2 in May compared to 129.4 in April. The commercial component of the index rose 1.0 percent while the institutional component dropped 1.9 percent. The Index is a significant predictor of future construction. The monthly index is a measure of the first report for nonresidential building projects in planning, which has been shown to lead construction spending by a full year.
“The resilience of the Momentum Index over the last two months has been remarkable in the face of the COVID-19 crisis and resulting economic recession,” said Dodge Data & Analytics. “With May’s reading, the Momentum Index is down 17 percent from its most recent peak in July 2018. During the Great Recession, by contrast, the peak-to-trough decline was 62 percent. While the Momentum Index may move lower in the future, its present level continues to suggest that there are enough projects entering planning to allow construction to begin a modest recovery in the third quarter.”
During May, 11 projects valued at $100 million or more entered the planning stage.
Below is a graph showing the history of the Dodge Momentum Index. To use its interactive features, view the graph on our website by clicking here. For assistance logging into or navigating the website, contact info@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
GrafTech’s Q2 loss widens in ‘challenging’ business environment
GrafTech cited a “challenging” part of the business cycle as its net loss widened in the second quarter.
CRU: Poor steel margins continue to push down raw material prices
Both iron ore and coking coal prices fell this week because of resistance from buyers. Iron ore prices have continued to fall throughout the past week, following sharp declines in steel prices in China, given no new policy announcement from the ‘Third Plenum’ meeting.
Op-Ed: The myth of the Mexican steel surge
We have heard ominous warnings about a flood of Mexican steel threatening the US market. It's the kind of rhetoric that gets thrown around often with little regard for the facts. The reality is that the Mexican steel surge is simply not happening, and the US steel industry has consistently maintained a significant trade surplus in finished products with Mexico. In 2023 alone, this surplus exceeded $3 billion.
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]
Influx of coated products fuels recent import surge
Steel imports fell back in May from April’s recent high but remained elevated compared to the levels seen over the past year. A deeper dive into the data confirms what SMU has been hearing from sources: Coated sheet is driving the recent rise in overall import levels.