Key Takeaways
- Construction spending remains historically elevated, with the annualized rate holding at $2.19 trillion in January 2026 – posting its second consecutive year-over-year gain after ten straight quarterly declines. Public highway outlays rose 3.3 percent from December, providing particularly firm support for structural and long-product steel demand.
- Housing starts, automotive sales, agricultural equipment orders, and HVAC shipments together paint a picture of an uneven but still-active steel consuming environment in early 2026. While some categories softened from late 2025 peaks, none has entered a recessionary contraction, and several show meaningful sequential improvement.
- Domestic supply-side conditions remain distinctly favorable for mills: Section 232 tariffs were raised from 25 percent to 50 percent in June 2025 and remain intact, hot-rolled coil prices are trading near $1,059 per metric ton as of late March 2026 – up roughly 19 percent year-over-year – and ferrous scrap posted a sharp 7.5 percent gain in February, supporting both producer margins and pricing discipline.
Get the latest steel news direct to your inbox.
Get updates on pricing and supply chain moves and more! Unlock full analysis and exclusive market insights by upgrading.
• Key takeaways and previews of each article
• Previews of our podcast videos
• More exclusive content and resources
• 50% off annual paid memberships
To unlock full articles, podcast videos, and market insights, upgrade to a paid plan.
By subscribing you agree to our Terms of Use, our Privacy Policy and our Information collection notice
Join as Full Member and read the full article:
• Unlimited Full Articles, Videos & Podcasts
• Ebook Discounts
• Comprehensive steel industry reporting
• All recent steel news in one place delivered straight to your inbox
Free: Regular updates – Key takeaways, video previews and more!
Monthly Member ($50/month): Full article access, podcasts, videos, weekly market insights, and 15% off individual ebooks.
Annual Member ($300/year, normally $600): Everything in monthly plus 25% off individual ebooks. Best value for steel professionals.
Founding Member ($900/year): Complete access, full ebook library included free ($397 value), and first access to upcoming courses and quizzes.
Sources
US Census Bureau, Construction Spending Survey, January 2026 — https://www.census.gov/construction/c30/c30index.html
US Census Bureau, New Residential Construction, January 2026 — https://www.census.gov/construction/nrc/index.html
ISM Manufacturing PMI, February 2026 — https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/
Cox Automotive, US Auto Sales Estimates, February 2026 — https://www.coxautoinc.com
Association of Equipment Manufacturers, Tractor and Combine Sales Data, February 2026 — https://www.aem.org
Air-Conditioning, Heating, and Refrigeration Institute (AHRI), January 2026 Shipment Data — https://www.ahrinet.org
Dodge Construction Network, Dodge Momentum Index, February 2026 — https://www.construction.com
Trading Economics, US Hot-Rolled Coil Steel Price — https://tradingeconomics.com/commodity/hot-rolled-coil-steel
Fastmarkets, US Ferrous Scrap Price Report, February-March 2026 — https://www.fastmarkets.com
Reuters, US Manufacturing Activity and Steel Tariffs Reporting, February-March 2026 — https://www.reuters.com
National Association of Home Builders, Single-Family Housing Outlook — https://www.nahb.org
US Department of Agriculture, Farm Income Forecasts — https://www.ers.usda.gov
Disclaimer
The content provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. Readers should seek consultation with qualified professionals before making any financial, investment, or legal decisions. We disclaim any liability for losses, damages, or adverse outcomes resulting from decisions made based on the information presented herein.
By subscribing you agree to our Terms of Use, our Privacy Policy and our Information collection notice
