Analysis
February 20, 2022
Written by David Schollaert
Housing starts fell in January as builders reported continued supply-chain troubles leading to construction delays, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development.
Despite the slow start to the year for new construction, building permits increased at a solid pace in January, signaling strong demand in the near-term.
Ferrous scrap prices appear to be up in October as trading gets underway, according to preliminary reports from market sources.
SMU’s latest Flat-Rolled Steel Survey points to largely stable demand, but foreign steel orders have softened since the previous survey, and service centers continue to report stronger activity than manufacturers.
Members of the Global Forum on Steel Excess Capacity (GFSEC) met in Wisconsin last week and unveiled an updated plan to combat market-distorting excess capacity. The Milwaukee Framework adds color to the 2017 “Berlin Principles.” It is also a positive step in the ongoing battle against global steel market distortions. However, the Framework is only a guidepost. It must be implemented correctly to make an impact as new problems loom.
This October, SMU is introducing a new way to keep you informed on the latest steel market news and insights: the Daily Digest. Beginning in mid-October, our new Daily Digest will replace the three newsletters currently delivered each week.
SMU’s Current Steel Buyers’ Sentiment Index fell this week, while Future Sentiment remained flat, according to our latest market survey.