Market Update | April 23, 2025

 

NEW HOME SALES AT ITS HIGHEST MONTHLY RATE SINCE SEPTEMBER

New home sales increased for the second consecutive month in March and was at its highest monthly rate since September. March new home sales came in at a 724,000 unit rate, up 7.4% from February and up 6.0% from the 683,000 unit rate in March 2024. Sales have now increased, on a year-over-year basis, in back-to-back months, and in four of the last five months. The inventory of unsold new homes held steady, ending the month flat from the end of February at 493,000 units. The month-end inventory, when combined with March’s sales rate, equates to 7.1 months of supply.

 

PRICE

Domestic sheet pricing was mixed once again this week as both hot-rolled and hot-dipped galvanized pricing were flat, and cold-rolled coil pricing dropped.

  • General uncertainty about future pricing direction and demand has led to a pause in buying activity over the past few weeks, and has led to the slowing of this upward pricing cycle.

 

Input Costs

Zinc pricing was flat this week as global demand is in question due to the current trade situation.

  • Pricing held at $1.18/lb this week, slightly below the ten-day average of $1.20/lb.

 

Spot iron ore pricing rebounded this week but remains in the very tight range we have seen for the past six weeks.

  • The current price is $1.08/mt, up from the sub $1.07/mt reading last week.

 

Met coal pricing rebounded this week as supply disruptions in Australia continued.

  • The current pricing of $183/mt is up 3.4% from last week and is now up 5.2% from this time last month.

 

SUPPLY

U.S. raw steel production slipped last week after climbing the previous week.

  • U.S. steelmakers produced 1.682 million tons at a 74.9% utilization rate, down from 1.689 million tons previously.
  • Production is down 0.4% from last week and was down 2.0% from the same week last year.
  • YTD production is down 1.3% from the same timeframe last year.

 

Global steel production continued to push higher in March, now up for the third straight month.

  • Global steel production came in at a 5.359 million mt/day rate in March, up 3.6% from February.
    • Production was up on a year-over-year basis as well, climbing 2.9% from the 5.210 million mt/day rate in March 2024.
  • Despite the jump in March, Q1 global production was still down 0.3% compared to Q1 2024.
  • While production increased around the world, the boost mainly came from China.
    • Chinese production came in at a 2.995 million mt/day rate, up 6.3% from February and was at its highest daily rate since June.
    • Production in the North American region slipped slightly, sliding to a 298k mt/day rate.
    • Production in the U.S. declined 2.0% from February to a 217k mt/day rate.

 

Preliminary March carbon steel imports came in at 1.870 million tons, up 13.0% from February but remaining below year-ago levels.

  • Carbon flat rolled imports totaled 477,606 tons in March, up 8.2% from February but were still down 28.1% compared to 664,553 tons last March.
  • While HR imports declined on a month-over-month basis, all three flat product groups declined sharply compared to last year.
  • Coated sheet imports were up 13.6% from February but down 29.7% from last March.
    • Within coated however, HDG sheet imports came in at a 4.592 million ton/day rate; the lowest rate since October 2023.
  • For Q1, total flat rolled imports are now down 17.9% compared to Q1 2024.

 

 

DEMAND

After a sharp jump in February, total U.S. auto and light truck assemblies were essentially flat in March.

  • March assemblies came in at a 10.07 million unit rate, down 0.2% from the 10.09 million unit rate in February.
  • Assemblies continued to slide on a year-over-year basis as well, sliding 9.1% from the 11.08 million unit rate in March 2024.
    • Assemblies have now declined, on a year-over-year basis, for five consecutive months.
  • For Q1, total assemblies came in at a 9.72 million unit average rate, down from the 9.87 million unit average rate in Q1 2024.
  • Uncertainty around consumer spending and impacts from cross-board tariffs, U.S. auto assemblies may be negatively impacted into the summer.

 

New home sales increased for the second consecutive month in March and was at its highest monthly rate since September.

  • March new home sales came in at a 724,000 unit rate, up 7.4% from February and up 6.0% from the 683,000 unit rate in March 2024.
    • Sales have now increased, on a year-over-year basis, in back-to-back months, and in four of the last five months.
  • The inventory of unsold new homes held steady, ending the month flat from the end of February at 493,000 units.
    • The month-end inventory, when combined with March’s sales rate, equates to 7.1 months of supply.
    • This is down from February and is at its lowest level since last April.
  • The median sales price dropped to $403,600, down 1.9% from February and 7.5% below the $436,400 median level from March 2024.

 

 

This material, information and analyses (the “Content”) may include certain statements, estimates and projections prepared with respect to, among other things, historical data and anticipated performance.  Content may reflect various assumptions by Majestic Steel USA, Inc. concerning anticipated results that are inherently subject to significant economic, competitive and other uncertainties and contingencies and have been included for illustrative purposes. Content is provided AS-IS.