Market Update | August 20, 2025

NEW HOUSING STARTS INCREASED SHARPLY IN JULY

On the back of stronger apartment complex starts, new housing starts came in at a 1.428 million unit rate, up 5.2% from June and up 12.9% from the 1.265 million unit rate last July. The jump in July starts comes on the back of upwardly revised readings in both May and June. Year-to-date new housing starts are now down 4.1% compared to the same timeframe last year. Permits, an indicator for future construction, continued to slide however, now down for the fourth consecutive month. New permits came in at a 1.354 million unit rate, down 2.8% from June and the lowest rate since peak pandemic disruption in 2020.

 

PRICE

Domestic sheet pricing remained range-bound this week and saw little movement across the board.

  • While both hot-rolled and cold-rolled product pricing inched higher, hot-dipped galvanized pricing slipped.
    • Pricing has now been stuck in this tight range since Memorial Day.
  • Slower demand and the desire for leaner inventories are canceling out the bump seen from the recent limitation on import competition.

 

Input Costs

Zinc pricing was down slightly this week but remained in a very tight range.

  • Pricing slipped to $1.26/lb this week, and was above the thirty-day average of $1.24/lb.

 

Spot iron ore pricing slipped as well this week after a slight increase a week ago.

  • The current price increased to $110/mt, down from $113/mt last week.

 

Coking coal pricing increased this week, climbing to $191/mt.

  • This is up 4.5% from last week and up 10.6% from this time last month.

 

SUPPLY

U.S. raw steel production slipped last week, after hitting the highest weekly output since January 2022 last week.

  • U.S. steelmakers produced 1.774 million tons at a 78.3% utilization rate.
  • Production is down 1.4% from last week but was up 2.8% from the same week last year.
  • YTD production is now up 1.3% from the same timeframe last year.

 

DEMAND

New housing starts increased sharply in July on the back of stronger apartment complex starts.

  • New housing starts came in at a 1.428 million unit rate, up 5.2% from June and up 12.9% from the 1.265 million unit rate last July.
    • The jump in July starts comes on the back of upwardly revised readings in both May and June.
  • Year-to-date new housing starts are now down 4.1% compared to the same timeframe last year.
  • Permits, an indicator for future construction, continued to slide however, now down for the fourth
    consecutive month.

    • New permits came in at a 1.354 million unit rate, down 2.8% from June and the lowest rate since peak pandemic disruption in 2020.

 

Confidence of U.S. homebuilders continued to worsen in August, matching its lowest level since early 2012.

  • The Housing Market Index came in at 32, down slightly from the 33 reading in July.
    • Any reading below 50 shows increased pessimism, while any reading above 50 shows optimism.
  • Builder sentiment has now been in negative territory for 16 consecutive months.
  • Affordability continues to be the biggest concern as buyers continue to wait for mortgage rates to decline.
  • Regionally, while all four remain in pessimism territory, the West (24) and South (29) remain the weakest.

 

U.S. light vehicle assemblies continued to slow in July, mainly due to the seasonal shutdowns.

  • U.S. light vehicle assemblies came in at a 10.33 million unit rate, down 2.3% from June but were up 16.1% from the 8.90 million unit rate in July 2024.
    • Despite the recent m/m declines, assemblies were up on a y/y basis for the third consecutive month.
    • The three-month average came in at a 10.60 million unit rate, the highest level since May 2024.
  • The year-to-date average of 10.19 million units, is down slightly from the average from the same timeframe last year (10.33 million units).

 

 

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.