Conditions in the commercial building sector appear to have improved somewhat since the last report, due to increased construction of warehouses and industrial buildings. Construction of office and retail structures is reported to be steady and strong. Some contacts reported the improved demand is due to a robust manufacturing sector. Industrial Activity Demand for steel is reported to be strong for all products. Back orders are larger than this time last year.
All contacts expect the third quarter to be very busy.
The major steel companies attempted to increase prices in the first and second quarters of this year, but these attempts were reportedly beaten back by competitive pressures. The low sales are reportedly due to high fuel prices, a large stock of used trucks, and higher interest rates. Some manufacturers are predicting layoffs to occur with the decline in production. Orders have increased for heavy construction equipment, reportedly due to increased highway construction. Durable goods production is described as good, with strong export markets.