Steel Markets

Dismal December ABI for Nonresidential Construction
Written by Sandy Williams
January 21, 2021
The Architecture Billings Index took another plunge in December, falling to 42.6 from 46.3. A score below 50 shows a decline in demand for design planning and is a leading economic indicator for nonresidential construction activity.
“Since the national economic recovery appears to have stalled, architecture firms are entering 2021 facing a continued sluggish design market,” said the American Institute of Architects’ Chief Economist Kermit Baker. “However, the recently passed federal stimulus funding should help shore up the economy in the short-term, and hopefully by later this year there should be relief as COVID vaccinations become more widespread. Recent project inquiries from prospective and former clients have been positive, suggesting that new work may begin picking up as we move into the spring and summer months.”
The new inquiries index was flat but positive at 52.4 in December, while the value of new design contracts remained in contraction at 48.5. Declines were prevalent across all sectors and regions.
Key ABI highlights for December include:
- Regional averages: South (46.8); Midwest (43.6); West (43.4); Northeast (38.8)
- Sector index breakdown: mixed practice (48.0); commercial/industrial (47.2); multi-family residential (46.1); institutional (38.5)
- Project inquiries index: 52.4
- Design contracts index: 48.5
Note: The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Global steel production inches up, China’s falls in October
Global steel output inched higher from September to October, even as production declined in China, the World Steel Association (worldsteel) said in its latest monthly report.

October US housing starts inch higher but remain down on-year
US housing starts crept higher for a second consecutive month in October. Starts were lower, however than the same month last year, according to the most recent data from the US Census Bureau.
Imports Fall in September, But Flat Rolled at Three-Month High
The decline in imports from August to September was more pronounced than license applications suggested earlier this month.
Final Thoughts
The first rule of Steel 101 is that you’re free to talk about Steel 101. We actually encourage it. Last week on Tuesday and Wednesday, SMU’s Steel 101 was held in Mt. Pleasant, S.C.

SMU Survey: Buyers Sentiment Indices Rise
SMU’s Current and Future Steel Buyers Sentiment Indices both increased this week, based on our most recent survey data. Every other week we poll steel buyers about sentiment. The Steel Buyers Sentiment Indices measure how steel buyers feel about their company’s chances of success in the current market, as well as three to six months down the road. We have historical data going back to 2008. Check our interactive graphing tool here.