Steel Markets
Spending on New Homes in July Offset by Weak Nonresidential Construction
Written by Sandy Williams
September 2, 2020
Construction spending slid in July for both public and private nonresidential construction, says the Associated General Contractors of America in their latest analysis of government data. The decline contrasted a surge in construction spending for new homes in July.
“The dichotomy between slumping nonresidential projects—both public and private—and robust homebuilding seems sure to widen as the pandemic continues to devastate state and local finances and much of the private sector,” said AGC Chief Economist Ken Simonson. “Without new federal investments in infrastructure and other measures to boost demand for nonresidential construction, contractors will be forced to let more workers go.”
Construction spending gained just 0.2 percent from June to July, for a seasonally adjusted annual rate of $1.36 trillion. The 1.2 percent decline in nonresidential spending nearly canceled out a 2.1 percent gain in residential spending, said AGC.
Public construction fell 1.3 percent as its three largest segments posted declines. Spending for highway and street construction fell 3.1 percent, educational construction 3.0 percent, and transportation facilities 1.6 percent.
Private nonresidential construction slipped 1.0 percent from June to July. Power construction, the largest segment, edged downward 0.1 percent. Commercial construction—comprising retail, warehouse and farm structures—dropped 3.2 percent, while manufacturing construction rose 0.2 percent and office construction fell 0.7 percent.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Buyers say plate market rejected last round of mill hikes
Participants in the domestic steel plate market said the plate market never accepted mill-issued spot price increases.
Cliffs touts steel stamping solution to replace aluminum in automotive
Cliffs said it successfully completed a defect-free trial production of exposed steel parts using aluminum-forming equipment in collaboration with an unnamed OEM,
Hot-rolled market anticipates no change despite mill mark-ups
Domestic sheet market participants say recent spot price hikes from NLMK USA and Nucor will do little to shake-up stagnant market conditions. Price increases in the current market On Friday Oct. 24, NLMK customers learned that the producer’s hot- and cold-rolled prices increased $50 per short ton (st) and its coated products were $100/st higher. […]
Market sources say regional activity is dictating plate demand
Demand for plate on the spot market remains soft by comparison to years past. However, this week regional demand variations grew more pronounced.
AISI: Raw steel production bounces back
Domestic mill production rebounded last week, according to the latest production figures released by the American Iron and Steel Institute (AISI). Production had been historically strong over the summer months before softening in early October.