Steel Markets

Housing Starts Up in June Despite Supply-Side Constraints
Written by David Schollaert
July 19, 2021
Housing starts accelerated in June, jumping 6.3% from May to a seasonally adjusted annual rate of 1.64 million units, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. Single-family starts increased 6.3% to a 1.16 million seasonally adjusted annual rate, while construction on homes of five units or more increased 6.2% to a 483,000 pace.
Despite the increase in housing production, there is concern over weakening permit numbers for both the single-family and multifamily markets. Overall permits decreased 5.1% in June compared with the month prior to a 1.60-million-unit annualized rate. Single-family permits decreased 6.3% to a 1.06-million-unit rate, whereas multifamily permits decreased 2.6% to a 535,000 pace.
“The recent weakening of single-family and multifamily permits is due to higher material costs, which have pushed new home prices higher since the end of last year,” National Association of Home Builders Chief Economist Robert Dietz said. “This is a troubling sign for future housing production. This is a challenge for a housing market that needs additional inventory.”
The count of single-family homes currently under construction is 675,000, up 32% compared to a year ago. The number of multifamily units under construction is up 2% to 684,000 apartments.
“While lumber prices have just recently begun to trend downward, builders continue to deal with rising prices of other building materials, such as oriented strand board, and major delays in the delivery of these goods,” NAHB Chairman Chuck Fowke said. “We are thankful that the White House recently held a meeting to seek solutions to these supply chain issues that are harming housing affordability.”
On a regional and year-to-date basis, combined single-family and multifamily starts are 41.4% higher in the Northeast, 25.5% higher in the Midwest, 21.5% higher in the South and 28.0% higher in the West.
Looking at regional permit data on a year-to-date basis, permits are 33.2% higher in the Northeast, 31.9% higher in the Midwest, 29.6% higher in the South and 32.2% higher in the West.

David Schollaert
Read more from David SchollaertLatest 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.