May Market Minute 2022

After a historic month-over-month increase in April, carbon sheet prices have started leveling off. On May 11, the price of hot-roll carbon was just above $1,409/ton, down $81/ton year-to-date. Likewise, the price of cold-roll carbon was around $1,800/ton, officially down $185/ton year-to-date.

But the story isn’t as bright when it comes to steel bar and tube products. Are you finding it increasingly difficult to get your desired price when talking with metal tube and bar suppliers?

It could be because carbon bar and tube products have experienced 59 price increases over the past 20 months.

• Structural tubing: 21 increases, a net increase of $73.25/cwt

• DOM tubing: 13 incremental increases, which have collectively increased price by 136%

• HR merchant bar: 10 increases, raising prices by $26.50/cwt

• HR SBQ bar: 8 increases, raising prices by $19/cwt

• CR bar: 7 increases, raising prices by $21.25/cwt

This is all having an impact on lead times:

Steel Demand in Construction

A reminder that as part of the $1.2T Bipartisan Infrastructure Law in a provision entitled the “Build America, Buy America Act”, new contract awards for infrastructure projects with federal funds on or after May 14 will include expanded domestic manufacturing requirements for steel, iron, manufactured products, and construction materials under new White House guidance.

In other construction-related steel news …

According to Dodge Construction, for the 12 months ending March 2022, residential starts improved 15% from the 12 months ending March 2021. Single family starts were 11% higher, while multifamily starts were 29% stronger on a 12-month rolling sum basis.

The cost of building materials has increased 4.9% since the start of 2022, according to the National Assn. of Home Builders (NAHB). Furthermore, the data shows that prices are up 19.2% year-over-year and 35.6% since the start of the COVID-19 pandemic in early 2020.

While lumber costs have accounted for a large portion of that increase (softwood lumber up 60.4% since September 2021), elevated metal prices have certainly contributed. However, according to NAHB, the first four months of 2022 have been positive for the cost of derivative steel products. This is after increasing 128% in 2021.

While lumber costs have accounted for a large portion of that increase (softwood lumber up 60.4% since September 2021), elevated metal prices have certainly contributed. However, according to NAHB, the first four months of 2022 have been positive for the cost of derivative steel products. This is after increasing 128% in 2021.

What’s Cooking?

The smell of summer is in the air. More specifically, the familiar wafts of charcoal and smoke are beginning to fill the air, as barbeque season officially kicks into gear across the country. But let’s be honest, it’s always barbeque season in Texas.

And that means DIY (do-it-yourself) projects are firing up, with homemade smokers and barbeque pits and grills tops on the list of many makers across the Lone Star State.

Before firing up your next BBQ project, take a look back at our primer on the metal that makes the grill.