Steel Markets
Architecture Billings Index Unchanged at 40.0 in July
Written by Sandy Williams
August 20, 2020
The July Architecture Billings Index held steady at 40.0, the same as June, indicating that business activity continues to be soft at firms, reports the American Institute of Architects.
The project Inquiries index slipped from 49.3 in June to 49.1 in July, while the index for design contracts fell sharply from 44.0 to 41.7. Any reading below 50 indicates a decline in activity.
“It’s clear the pandemic continued to contribute to uncertainty in business conditions, especially as cases spiked in states across the country,” said AIA Chief Economist Kermit Baker. “While clients expressed interest in exploring new projects, many are hesitant to sign onto new contracts with the exception of the multifamily residential sector, which came close to seeing billings growth in July.”
Billings declined in all sectors with the breakdown showing multifamily residential at 47.5, mixed practice at 44.0, institutional at 39.5 and commercial/industrial at 35.4.
The Northeast continued to trail the regional averages at 36.8. The three-month billing average was 40.9 in the West, 40.7 in the South and 40.1 in the Midwest.
AIA asked firms to predict how their revenue would change in the third quarter of 2020. The average expected decline was 4.6 percent, but more than a quarter of firms said they anticipate an uptick in revenue. Those firms specializing in multifamily residential expressed the most optimism with 46 percent expecting to see an increase in revenue in the third quarter.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.
Worldsteel: Global steel demand flat, but modest rebound forecast for 2026
The World Steel Association (worldsteel) Short Range Outlook for global steel demand predicts that 2025’s steel demand will clock in at the same level as in 2024. In its October report, the Brussels-based association stated that this year’s steel demand will reach ~1,750 million metric tons (mt). The organization forecasts a 1.3% demand rebound in 2026, pushing […]
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.