The monthly Construction MMI® registered a value of 88 for May, one point higher than April’s value.
Major infrastructure projects kicked in this month, including work on the second phase of Virginia’s Dulles Metrorail project. It moves forward with approval of a nearly $2 billion Transportation Infrastructure Finance and Innovation Act loan. Phase 2 of the approximately 23-mile-long Silver Line train is slated for 2018 completion.
Private projects moved forward as well. MGM Resorts International and Anschutz Entertainment Group (AEG) held a groundbreaking recently to mark the start of construction of a $375 million arena in Las Vegas. The project will create a 20,000-seat arena with upscale seating and a nightclub. The arena is expected to open in 2016.
The construction sector added 32,000 jobs in April as companies brought on workers for the heavy summer season. The BIM Forum in Boston highlighted process technologies that are changing the way projects are delivered. In regulatory news, a trade dispute between the US and Mexico over reinforcing steel bar, or rebar, heated up this month when the Commerce Dept. imposed 66.7% duties on Mexican rebar imports.
At $538.42, Chinese rebar finished the month up 1.5 percent per metric ton. After dropping the previous month, the price of US shredded scrap prices rose 1.3 percent to $396.00 per short ton. The weekly US Gulf Coast bar fuel surcharge inched up 0.8 percent to $0.52 per mile. The weekly US Rocky Mountain bar fuel surcharge rose 0.3 percent to $0.55 per mile after falling the previous month.
The value of Chinese H-beam steel weakened by 2.1 percent this month, settling at $516.05 per metric ton. With a 0.4 percent decline, the weekly US Midwest bar fuel surcharge closed the month at $0.55 per mile.
At a price of $154.98 per dry metric ton, the Chinese low price of 62% Australian iron ore fines did not budge the entire month. At a price of $2,269 per metric ton, Chinese aluminum bar did not budge the entire month. Last month was consistent for European 1050 aluminum, which did not move from $2,846 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.