The nonresidential building market was hamstrung by weather-related delays during the first part of the 2014, but conditions improved dramatically throughout the rest of the year to finish with greater than anticipated spending levels. The commercial construction sector is now looking at double-digit increases in 2015, led by vigorous levels of demand for hotels and office buildings.
The American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, is projecting that spending will see a 7.7% increase in 2015, with next year’s projection nudging up to 8.2%.
In residential construction, US single-family home price appreciation slowed further in November as lean inventories and tight lending standards have limited housing activities, according to a closely watched survey released on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 4.3% in November from the prior year, the slowest since October 2007 although it matched analyst expectations. This compared with a 4.5% annual increase in October.
After drifting 14%, Chinese H-beam steel dropped to CNY 2,390 ($382.09) per metric ton making it the biggest mover on the weekly Construction MMI® this week. Closing out the third week of declining prices, the price of Chinese rebar dropped by 4.5%, finishing at CNY 2,550 ($407.67) per metric ton. The price of US shredded scrap fell 0.6% to $336.00 per short ton after rising 0.6% the week before. The Chinese low price of 62% Australian iron ore fines closed at CNY 970.00 ($155.07) per dry metric ton after a flat week.
Low raw material prices as well as weak demand are dragging down prices for all Chinese metals this week.
Chinese aluminum bar fell 0.2% over the past week to CNY 12,760 ($2,040) per metric ton. Prices for European 1050 aluminum remained constant, closing the week at EUR 2,499 ($2,782) per metric ton.
This week, the weekly US Rocky Mountain bar fuel surcharge finished at $0.32 per mile after falling 11.8%. The weekly US Midwest bar fuel surcharge fell to $0.32 per mile after a 11.4% decrease from the previous week. The weekly US Gulf Coast bar fuel surcharge saw a 10.1% drop-off this week to $0.32 per mile.
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.