Economic activity rose modestly for most Federal Districts as 2020 came to a welcome end. Two Districts reported flat activity while two others noted a decline, said the Federal Reserve its January 2021 Beige Book. The recent surge in COVID-19 cases resulted in another decline for retail sales and leisure and hospitality services. More Americans […]
Home prices rose to an all-time high in October, according to the latest S&P Dow Jones Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index jumped 8.4 percent in October following a 7.0 percent annual gain in September. The 20-City Composite posted a 7.9 percent year-over-year gain, up from 6.6 percent in the […]
Many of you may have sat, like me, in a line to get gasoline this week. It brought back memories of the Arab Oil Embargo of 1973 and the Iranian boycott of 1979. This time, a gasoline pipeline supplying about half of that product to the eastern United States was closed, allegedly due to a […]
Two phenomena that we have not seen in a long time have recently appeared. Whether they are short-term events or long-term realities is provoking debate. I am speaking of the distinct but related issues of inflation and shortages of, it seems, nearly everything. Inflation was a major factor in the U.S. economy throughout the 1970s. […]
New home sales in November slipped 11 percent from October to a seasonally adjusted annual rate of 841,000, reported the Census Bureau and Department of Housing and Urban Development. The pace of sales continues to outperform the 2019 rate however, up 20.8 percent from November last year. The median sales price in November was $335,300 and […]
By CRU Senior Cost Economist Ross Cunningham, from CRU’s Steelmaking Raw Materials Monitor Global CO2 emissions have been rising since the start of the industrial revolution. This has caused rising global temperatures and severe weather events such as wildfires, flooding and drought. In 2015 the United Nations framework convention on climate change put together the Paris […]
Existing home sales fell for the first time in five months, dipping 2.5 percent to a seasonally adjusted annual rate of 6.69 million. Sales fell or held steady in all regions although remained significantly higher on a year-over-year basis. “Home sales in November took a marginal step back, but sales for all of 2020 are […]
There was no reprieve in November for architecture firms that have seen billings shrink for the past nine months. The American Institute of Architects reports the Architecture Billings Index slid to 46.3 in November, down from October. Although inquiries into new work have risen, albeit at a slower pace, the value of new design contracts […]
By CRU Analyst Sam Grant It is now clear that Joe Biden will become the new president of the United States in January 2021, yet he will need control of the Senate to implement his economic policy agenda. As a result, the contest for two Senate seats in Georgia on Jan. 5 will be crucial. […]
Housing starts rose 1.2 percent in November to a seasonally adjusted annual rate of 1,547,000 and were 12.8 percent higher than November 2019. Single-family housing starts flattened in November increasing just 0.4 percent to a rate of 1,186,000. Starts for buildings of five units or more rose 8.0 percent. On a year-to-date basis, single-family construction […]
Total construction expenditures on a rolling 12-month basis were at an all-time high in October, but year-over-year growth has slowed from 8.1 percent in February to 0.5 percent in October. Private constriction expenditures returned to positive growth in October after declining in the months June through September. Steel Market Update analyzes Construction Put In Place […]
Sales of new single-family homes were flat in October, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The seasonally adjusted annual rate of 999,000 was 0.3 percent below the September revised rate of 1,002,000, although it soared 41.5 percent above the October 2019 estimate. […]
Home prices in September surged to their biggest annual gain in six years, says the latest data from S&P Case-Shiller. The S&P Core-Logic Case-Shiller National Home Price NSA Index jumped 7 percent from a 5.8 percent gain in August. “Housing prices were notably – I am tempted to say ‘very’ – strong in September,” said […]
Architecture firms report that project planning in October remained weak for the eighth consecutive month. The Architecture Billings Index rose slightly to 47.5 from September’s reading of 47.0, but any number below 50 indicates a decline in billings. The project inquiries index was a more promising sign for future business conditions, climbing to its highest […]
Australian steel producer BlueScope has revised its forecast for the first half of FY 2021 due to improved operations at all its segments and the sale of property in the U.S. Earnings before interest and taxes are expected to increase to AUD 475 million ($345 million U.S.) compared to the October forecast of AUD 340 […]
Existing home sales continued to soar in October, marking five straight months of gain. Sales increased 4.3 percent from September and 26.6 percent from a year ago. Median price for an existing home jumped 16 percent year-over-year to $313,000 and most homes on the market sold in less than a month. Inventory continued to decline, […]
Housing starts exceeded expectations in October, jumping 4.9 percent from September to a seasonally adjusted annual rate of 1,530,000 following a revision to 1,459,000 in September. Starts were up 14.2 percent from the October 2019 rate. Single-family construction led the way with a monthly increase of 6.4 percent. Construction starts for multifamily buildings of five […]
By CRU China CEO John Johnson and Economist Yingrui Wang Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium level subscription, email Info@SteelMarketUpdate.com. China’s Five-Year Plan (FYP) is a key guide to the strategic direction of China. In this Insight we explain the significance […]
By CRU Principal Analyst James Campbell, from CRU’s Long Products Monitor Most long product prices around the world increased this month as the recovery in demand continues. For some markets and products, the increase in supply has been outpaced by demand. Wire rod remains the strongest product right now as the increase in construction activity […]
By Principal Consultant Josh Spoores, from CRU’s Steel Sheet Products Monitor North American sheet prices have continued to surge after bottoming this past August. For HR coil, prices have been assessed at $712 /s.ton. Since Aug. 12, these prices have gained $237 /s.ton, or 63%. This is the fastest percent gain over three months in […]
By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Steel Monitor In this Global Economic Outlook, we look ahead to 2021 and outline our top ten calls for the global economy. These include predictions on Covid-19 vaccines, world growth, the auto and construction sectors, the U.S. dollar, monetary and fiscal policy, […]
The ISM Manufacturing PMI exceeded expectations in October posting a score of 59.3 percent, a 3.9 percent increase from September and indicating factory growth for the fifth consecutive month. “The manufacturing economy continued its recovery in October,” said Timothy Fiore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee. “Survey committee members reported that […]
Residential construction spending continues to lead nonresidential by a wide gap, said the Associated General Contractors of America. Total construction spending in September increased 0.3 percent from August to a seasonally adjusted annual rate of $1.41 trillion. Private and public nonresidential spending fell 1.6 percent from August and 4.4 percent from a year ago. In […]
Construction is slowing, but still has positive growth driven by state and local building and infrastructure expenditures. Privately funded work is contracting. In September, construction expenditures reached an all-time high and on a three-month moving average (3MMA) basis were only slightly lower than April 2020. Steel Market Update analyzes the Commerce Department’s Construction Put in […]
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index indicated strong growth in housing prices in August. The national composite rose 5.7% year-over-year, up from 4.8% in July. The 20-city composite (excluding missing Detroit data) posted a 5.2% annual gain compared to 4.1% the previous month. The month-over-month analysis showed a 1.1% increase for […]
Residential housing construction remains in high demand as consumers take advantage of favorable interest rates. Sales of new single-family homes in September slipped 3.5 percent from August to a seasonally adjusted annual rate of 959,000, but were 32 percent higher than a year ago. Sales in the Northeast fell 28.9 percent from September and sales […]
North Star BlueScope continues to shine for Australian parent company BlueScope Steel. North Star continues to ship at full capacity in the first half of FY 2021 driven by the rebound in the U.S. auto industry. Steel spreads have improved in the half due to higher HRC pricing, although earnings are expected to be somewhat […]
Economic activity grew at a slight to modest pace in early October with inconsistency among sectors, says the Federal Reserve’s latest Beige Book. Manufacturing activity growth was moderate and the sector added jobs across the country. Demand for new and existing homes kept residential construction robust, but interest in commercial real estate leasing deteriorated. Construction […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
Existing home sales soared in September, up 9.4 percent to a seasonally adjusted annual rate of 6.5 million. Compared to September 2019, sales were up nearly 21 percent, reported the National Association of Realtors. “Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see […]