Steel Markets

Home Building Leads Construction Spending in November
Written by Sandy Williams
January 4, 2021
Construction spending was heavily weighted toward single-family homebuilding in November, according to an analysis of government data by the Associated General Contractors of America. Residential construction soared 2.6 percent last month and 16.2 percent year-over-year, contrasting a 0.6 percent decline in private and public nonresidential spending in November and a 4.7 percent tumble from a year ago.
Construction spending totaled $1.46 trillion at a seasonally adjusted annual rate, up 0.9 percent from October and 3.8 percent from November 2019.
Private nonresidential construction slipped 0.8 percent from the previous month and 9.5 percent year-over-year. Declines were noted in power, commercial and healthcare construction. Construction for manufacturing was nearly flat at a 0.1 percent gain and office construction gained 0.3 percent.
Public construction dipped 0.2 percent last month, but increased 3.1 percent year-over-year, said AGC. Spending declined in most nonresidential categories, but highway and street construction, the two largest segments, gained 1.8 percent in November. Educational construction rose 0.3 percent.
“Private nonresidential construction declined for the fifth-straight month in November, while public nonresidential spending slipped for the fifth time in the past six months,” said AGC Chief Economist Ken Simonson. “Unfortunately, our latest survey finds contractors expect the volume of projects available to bid on in 2021 will be even more meager.”
Demand for new homes soared during 2020, fueling November’s rise in private residential construction spending. Single-family construction spending climbed 6.1 percent, home improvement spending gained 0.2 percent and multifamily construction spending was flat, said the association.
AGC continues to lobby the government for an infrastructure spending bill and other measures that will boost demand for nonresidential construction.
“Without additional measures to boost demand for nonresidential construction, this year is likely to be a challenging one for the industry,” said Stephen E. Sandherr, the AGC’s chief executive officer. “The impacts of the pandemic are clearly accumulating for many construction employers.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Sheet market participants say sales still in a slump
Across the US and throughout the steel supply chain, market participants are reporting another painfully quiet week for hot-rolled (HR) coil sales.

CRU: Lower sheet prices have pulled back demand for imports
Domestic sheet prices in the US remained under pressure, limiting interest in imports, while domestic prices for longs products continued to rise.

President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.

USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.