Nonresidential-construction weakness keeps steel rebar prices low
Mill execs see no inflation until 2010
Tom Stundza -- Purchasing, 11/4/2009 2:11:14 PM
With nonresidential construction activity still weak and scrap feedstock costs falling, concrete reinforcing steel bar (rebar) prices are eroding this week to $485/ton from an average $517 over the past two months.
The near-term market outlook is weak, says Murray McClean, CEO of Commercial Metals, who anticipate prices "to trend moderately lower" throughout this quarter with shipments at slightly lower levels, given seasonal trends." He does expect rebar prices to rise slightly in 2010 as infrastructure stimulus programs are likely to boost demand somewhat, but is concerned that private nonresidential construction is likely to remain weak.
Meanwhile, the Architectural Billings Index has registered below 50 since February and only rose to 43.1 in September versus 41.7 in August. The ABI is considered to be a leading economic indicator that provides about six-months of the future strength of non-residential construction activity. A TD Bank report says "there is yet to be evidence that conditions at U.S. architecture firms are set to improve in the near-term at least."
Steel beam prices continue to drop
09/22/2009Nonresidential-construction spending weak
07/22/2009Rebar Prices Cracked
03/11/2009Steel rebar prices clobber construction
08/13/2008Structural steel demand is dismal
10/21/2009
Now Playing: 