After six months of decline, existing-home sales showed some improvement in October. Completed transactions for single-family homes, condos, townhomes and co-ops increased 1.4 percent from September to a seasonally adjusted annual rate of 5.22 million, according to data from the National Association of Realtors. The increase was tempered by a 5.1 percent drop in sales […]
Builder confidence, as measured by the NAHB/Wells Fargo Housing Market Index, fell eight points in November to its lowest reading since mid-2016. The index posting of 60 was still in positive territory, but indicated caution among builders. “Builders report that they continue to see signs of consumer demand for new homes but that customers are […]
Builder confidence in the market for newly-built single-family homes fell four points to 56 in December on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) as concerns over housing affordability persist. Although this is the lowest HMI reading since May 2015, builder sentiment remains in positive territory. “We are hearing from builders […]
Housing starts rebounded in October due to multi-family construction, while single-family starts continued to decline. Overall housing starts were 1.5 percent higher from September to October for a seasonally adjusted annual rate of 1,228,000, according to Commerce data. Multi-family starts were up 6.2 percent, but single-family starts declined 1.8 percent. Starts climbed 32.9 percent in […]
Construction is experiencing strong growth led by nonresidential building and infrastructure expenditures. On Nov. 1, the Commerce Department released the Construction Put in Place (CPIP) expenditures data for September. The growth of total construction on a rolling 12-month basis year over year increased from 2.1 percent in January to 4.2 percent in September. On a […]
Robust demand offset increased vehicle pricing and higher interest rates last month, keeping U.S. auto sales strong in October, although weaker than a year ago. October sales were expected to be impacted by replacement buying due to hurricane damage in the South. There was also one extra selling day in the month. “Many signs in […]
The price increase on flat rolled seems to have “fizzled out,” according to many of the steel buyers Steel Market Update spoke with over the past two days. A number of mills have sweetened their end-of-the-year deals in order to finish out their 2018 order book. This is not unusual during a normal fourth quarter, […]
Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2018, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter of 2018, real GDP increased 4.2 percent. The growth in real GDP reflected increases in consumer spending, inventory investment, government spending and business investment. These […]
The S&P CoreLogic Case-Shiller Indices showed annual home price gains dipped below 6.0 percent for the first time this year posting at 5.8 percent, indicating price gains may be weakening. After seasonal adjustment, the National Index rose just 0.6 percent month-over-month. The 20-city Composite eased downward 0.4 percent from July to register a 5.5 percent […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Sales of new homes fell in September to a seasonally adjusted annual rate of 553,000, the lowest level since December 2016. Sales dropped 5.5 percent from the previous month and 13.2 percent from September 2017, according to the latest report from the Commerce Department. “Home price gains and rising interest rates are slowing down the […]
Existing home sales fell in September after a flat August with sales declining in all regions. September sales were a clear shift in the housing market, said the National Association of Realtors, with homes taking slightly longer to sell. Existing home sales declined 3.4 percent from August to a seasonally adjusted annual rate of 5.15 […]
Housing starts dropped 5.3 percent in September to a seasonally adjusted annual rate of 1,201,000, falling more than expected by economists. Multi-family housing led the decline, falling 12.9 percent, compared to 0.9 percent for single-family homes. Compared to a year ago, starts were 6.4 percent higher, said the Census Bureau and HUD. “Slight gains off […]
The International Monetary Fund, which updates its World Economic Outlook each April and October, has made a downward revision to its forecast for global GDP growth in 2018 and 2019. On Oct. 9, the IMF published the following: “The latest World Economic Outlook report projects that global growth will remain steady over 2018–19 at last […]
Construction in the United States is experiencing strong growth led by infrastructure expenditures, according to Steel Market Update’s latest analysis of Commerce Department data. On Oct. 1, Commerce released the construction put in place (CPIP) expenditures data for August. The growth of total construction on a rolling 12-month basis year over year increased from 2.1 […]
Indicators of economic activity in the U.S. do not predict a recession any time soon, but the yield curve should be on your radar screen. Once every three months, the Steel Market Update staff tries to gain insight into the timing of the next recession. Economists consider recessions to be a necessary evil to clear […]
Sales of new homes increased last month despite affordability issues related to building costs. Sales of new single-family homes rose 3.5 percent in August compared to July and were 12.7 percent higher than in August 2017. The seasonally adjusted annual rate was estimated at 629,000. Sales were strongest in the Northeast, soaring 47.8 percent from […]
Home prices grew at a slower rate in July, according to the latest S&P CoreLogic Case-Shiller Index. The National Home Price NSA Index posted an annual gain of 6.0 percent, down from 6.2 percent in June. The 20-City Composite was at an 11-month low, posting a 5.9 percent year-over-year increase compared to 6.4 percent in […]
Housing starts rebounded in August after a lackluster gain in July. Data from HUD and Commerce show new residential housing starts jumped 9.2 percent to a seasonally adjusted annual rate of 1,282,000 from the upwardly revised July SAAR of 1,174,000. Starts were 9.4 percent higher than August 2017. The increase took economists by surprise and […]
Existing-home sales were flat in August, halting a four-month decline, said the National Association of Realtors. Sales of single-family homes, townhomes, condos and co-ops were at a seasonally adjusted annual rate of 5.34 million last month, down 1.5 percent from a year ago. “Strong gains in the Northeast and a moderate uptick in the Midwest […]
Global steel production in July hit an annual rate of 1.855 billion metric tons. Capacity is calculated to be 2.38 billion metric tons; therefore, capacity utilization was 78 percent, according to the latest Steel Market Update analysis of World Steel Association data. In three months through July, Chinese production grew by 10.5 percent year over […]
Construction is on a roll with expenditures in July at an all-time high, according to Steel Market Update’s latest analysis of Commerce Department data. In the Sept. 4 data release which reported expenditures through July, the growth of total construction on a rolling 12-month basis year over year increased from 2.1 percent in January to […]
Sales of both new and existing homes declined in July as higher prices impacted affordability for buyers. Existing home sales fell for the fourth consecutive month in July, dipping 0.7 percent to a seasonally adjusted annual rate of 5.34 million. Sales are 1.5 percent below a year ago, said the National Association of Realtors. Sales […]
Housing data was mostly flat in July with housing starts up just 0.9 percent to a seasonally adjusted annual rate of 1,168,000 units. Data from HUD and Commerce show single-family housing starts increasing 0.9 percent and multifamily housing 3.1 percent. Regionally, housing starts fared better in the Midwest and South, increasing 11.6 percent and 10.4 […]
Steel Market Update celebrates its 10-year anniversary this month. In August 2008, John Packard incorporated the Steel Market Update newsletter and began selling subscriptions to those interested in learning more about what was happening in the flat rolled steel industry. As a steel veteran with more than 30 years of sales experience, Packard believed he […]
Steel Market Update celebrates its 10-year anniversary this month. In August 2008, John Packard incorporated the Steel Market Update newsletter and began selling subscriptions to those interested in learning more about what was happening in the flat rolled steel industry. As a steel veteran with more than 30 years of sales experience, Packard believed he […]
Construction is on a roll with expenditures in June at an all-time high, according to Steel Market Update’s latest analysis of Commerce Department data. In the Aug. 1 data release, which reported expenditures through June, the growth of total construction on a rolling 12-month basis year over year increased from 2.1 percent in January to […]
AK Steel earnings slipped a bit in the second quarter due to production disruptions at two of its facilities. Net income totaled $56 million, down from $77.2 million a year ago. Results were impacted by $11.5 million in operational costs associated with a power outage at Butler Works and a fire at the temper mill […]
Home price gains are starting to lose momentum, but an inventory shortage kept prices strong in May despite slower sales. The S&P CoreLogic Case-Shiller National Home Price NSA Index rose 6.4 percent in May, matching the year-over-year-increase reported in April. The 20-city composite posted a 6.5 percent gain year-over-year, compared to 6.7 percent in April. […]
China’s share of global steel production is setting a new high each month. Global steel production was down by 1.1 percent in June, but May’s production hit an all-time high and June was the second highest month ever, according to the latest Steel Market Update analysis of World Steel Association data. In three months through […]