Steel Products Prices North America
Dodge Momentum Index Rose 6.6% in December
Written by David Schollaert
January 10, 2023
The Dodge Momentum Index registered 222.2 in December, up 6.6% from 208.3 in November, according to data and analytics from the Dodge Construction Network.
Dodge is the leading index for commercial real estate, using the data of planned nonresidential building projects to track spending in the sector for the next 12 months. For December, the index’s subcomponents also accelerated, with the institutional component rising 2.7% and the commercial component increasing by 8.4%.
December’s increase in the headline index was supported by broad-based increases across office, warehouse, retail, and hotel planning, the report said. The institutional component saw varied results, with growing recreation and public building projects, while education and healthcare planning activity remained flat.
Compared to December 2021, the overall Momentum Index was 40% higher last month. The institutional component was up 20%, while the commercial component was 51% higher on a year-over-year basis.
The report noted that a total of 15 projects with a value of $100 million or more entered planning last month. Commercial projects include a $500-million Vantage Data Center in Sterling, Va., and a $183-million mixed-use building in Chicago, and institutional projects include a $400-million Acute Neuropsychiatric Hospital in Los Angeles, and a $185-million life sciences building in Philadelphia.
“One of the key construction storylines for 2022 was the return of enthusiasm and optimism in prospects for nonresidential growth,” said Richard Branch, Dodge’s chief economist. “While some of that will likely erode in 2023 as economic growth wanes, increased demand for some building types like data centers, labs, and healthcare buildings will provide a solid floor for the construction sector.”
An interactive history of the Dodge Momentum Index is available on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Products Prices North America
HRC-galvanized price gap edges higher
The premium galvanized coil carries over hot-rolled coil (HRC) coil has marginally widened in recent months. As of Sept. 16, the spread between these two products reached a three-month high of $175 per short ton (st), though it is still low by historical standards.
SMU Price Ranges: HR slips, hopes for Q4 rebound still standing
SMU’s price ranges were mixed again this week as the market continues to seek a floor amid industry hopes for a Q4 rebound.
Nucor’s hot band list price holds at $875/ton
Nucor held its hot-rolled coil list price flat again this week, according to its Monday, Sept. 15 consumer spot price (CSP) notice.
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
SMU Price Ranges: Some predict bottom is near as big discounts dry up
Sheet prices were mixed this week as some mills continued to offer significant discounts to larger buyers while others have shifted toward being more disciplined, market participants said.