In Cleveland, however, the pace of building activity has moderated. One Cleveland contact cited labor shortages as a possible cause. Builders expect lower sales activity to persist for the foreseeable future. Declining prices for homes have cut into builders' profits. Prices for materials remain generally flat.
Bricks remain in short supply in the region.
The overall demand for steel has moderated and prices have fallen back to their first-quarter levels. Most producers report a drop in orders for the third quarter. Service centers had dramatically increased inventory early in the year as a hedge against expected second-quarter price increases. They are expected to sell off their extra inventory, prompting demand to pick up by the end of the fourth quarter. Heavy-truck manufacturers report a slight increase in orders, but unless orders increase dramatically, industry sources anticipate layoffs due to the rapid diminishment of unfilled order backlogs.