Source: MetalMiner IndX℠
The monthly Construction MMI® registered a value of 88 in September, an increase of 1.1 percent from 87 in August.
“Steel scrap price improvement formed the basis of support for this month’s Construction MMI®,” said Lisa Reisman, managing editor of MetalMiner. “Despite slowing headline construction spending numbers, commercial construction led by larger apartments, parking garages and even retail construction has fueled the commercial growth,” she added.
Several metal prices that comprise the Construction MMI® actually declined, but rising fuel surcharges stemming from rising diesel fuel prices, as well as the steel scrap, lent support.
Drivers of the Construction MMI’s Rise
After dropping the previous month, the price of US shredded scrap prices rose 19.9 percent. The weekly US Rocky Mountain bar fuel surcharge closed the month following a 16.7 percent upswing. The weekly US Midwest bar fuel surcharge climbed 11.5 percent, while the weekly US Gulf Coast bar fuel surcharge rose 10.4 percent over the past month.
The Chinese low price of 62% Australian iron ore fines finished the month with a fall of 15.3 percent. Chinese rebar prices finished the month 4.7 percent lower. This was the second straight month of declines for rebar prices. Chinese H-beam steel prices decreased by 2.9 percent this month.
The price of Chinese aluminum bar increased by a few dollars per metric ton, the second month in a row that price closed relatively steady. Prices for European 1050 aluminum remained quiet this past month, holding above $2,800 per metric ton.
The Construction MMI® collects and weights 9 metal price points used within the construction industry to provide a unique view into construction industry price trends over a 30-day period. For more information on the Construction MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.