Construction materials prices shifted a bit in October.
“Prices for inputs used in nonresidential construction fell 0.5% in October after no change in September. Declines in energy and energy related materials prices accounted for most of the drop,” reports Reed Construction Data.
“Prices of building materials primarily used in residential construction were down 0.4% in October after increasing 0.2% in September. Lower energy prices as well as lower prices for insulation, gypsum, and HVAC equipment all contributed to the decrease and offset higher prices for lumber and oriented strand board (OSB).”
Where are we headed?
“The outlook is for nonresidential building materials prices to rise modestly early next year and then increase at a faster pace. Stronger than expected growth would result in greater building materials price inflation. Lower than expected growth would result in slower building materials price inflation.”
“Most of the risk is on the downside given the uncertainty surrounding funding for federal government operations and the willingness to raise the debt ceiling. These issues are a drag on investment, and consequently on construction and will remain so until they are resolved for more than just a short period.”
Let’s take a look at this week’s numbers…
The week’s biggest mover on the weekly Construction MMI® was the weekly US Gulf Coast bar fuel surcharge, which saw a 1.4 percent increase. This comes on the heels of a 1.2 percent decline the week prior. The weekly US Midwest bar fuel surcharge rose 0.3 percent after falling 0.9 percent during the previous week. The weekly US Rocky Mountain bar fuel surcharge traded sideways last week.
The price of Chinese rebar fell 0.3 percent after rising 0.3 percent the week before. The Chinese low price of 62% Australian iron ore fines remained unchanged for the week. Prices for US shredded scrap remained constant, closing the week. Following a steady week, prices for Chinese H-beam steel closed flat.
Chinese aluminum bar traded sideways last week. European 1050 aluminum remained unchanged for the week.
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. 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.