Steel Markets
HMI Index Shows Jump in Builder Confidence
Written by Sandy Williams
June 16, 2020
Builder confidence is increasing as the economy recovers from the COVID-19 pandemic. The National Association of Home Builders/Wells Fargo Housing Market Index jumped 21 points in June to a score of 58, returning to positive market conditions. Any score above 50 indicates that builders view conditions as good as opposed to bad.
“As the nation reopens, housing is well-positioned to lead the economy forward. Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak,’ commented NAHB Chief Economist Robert Dietz.
The components comprising the HMI Market Index all surged during in June. Current sales conditions jumped 21 points to 63, sales expectations for the next six months leapt 22 points to 68, and traffic of prospective buyers gained 22 points to post an index reading of 43.
Regionally, only the Northeast remained below the 50 neutral point, gaining 31 points to register 48. The South gained 20 points to 62, the Midwest 19 points to 51, and the West soared 22 points to 66.
Said Dietz, “Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market. Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods. At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...
Great Lakes iron ore cargoes down in September as Cleveland tonnage slips
Iron ore shipments from US Great Lakes ports fell sharply in September, per the latest from the Lake Carriers’ Association (LCA) of Westlake, Ohio.
HVAC equipment shipments down through August
Although total HVAC shipments fell in August, YTD volumes remain relatively strong. Nearly 15 million units were produced in the first eight months of the year, the fourth-highest rate in our 19-year data history.
Sheet market sources slam tariffs for prolonged demand slump
Tariffs are ultimately to blame for stagnant demand in the hot-rolled coil market, domestic market sources tell SMU.
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.