Tag Archive for 'construction materials prices'

ABC Reports: Construction Materials Prices Remain Stable In November

CEU2“November represented another month of remarkable stability for construction input prices.” —ABC Chief Economist Anirban Basu.

PPI-December_2013Overall, construction materials prices fell 0.5 percent in November and are up only 1.1 percent year over year, according to the Department of Labor’s Dec. 13 Producer Price Index. Nonresidential construction materials are down 0.6 percent for the month and are 0.7 percent lower than the same time last year.

“November represented another month of remarkable stability for construction input prices,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu.

“Although many investors predicted significant inflation this year due to expansionary monetary policies in much of the developed world, there continues to be a lack of significant inflationary pressures both globally and nationally.”

Overall, the nation’s wholesale goods prices expanded 0.2 percent in November, but are down 0.9 percent year over year.

“Next year is unlikely to offer as much stability as 2013,” Basu said. “Global economic growth is set to accelerate and the apparent budget deal in Congress should produce greater certainty among businesses, helping improve an already benign national economic forecast. Tension in the Middle East also continues to be a consideration. Together, these factors suggest materials price increases may be at least slightly more rapid in 2014.”

The following materials prices increased in November:

•Fabricated structural metal products were up 0.1 percent for the month and 0.3 percent year over year.

•Softwood lumber prices increased 2.6 percent on a monthly basis and are up 12.8 percent year over year.

•Natural gas prices were up 1.9 percent for the month and 3.3 percent on an annual basis.

• Nonferrous wire and cable prices rose 0.2 percent on a monthly basis and are down 3 percent year over year.

•Iron and steel prices were up 1.8 percent for the month and are down 0.1 percent compared to the same time last year.

•Prices for plumbing fixtures and fittings inched up 0.1 percent in November and are up 1.6 percent year over year.

•Steel mill products prices increased 0.8 percent in November but are down 0.6 percent compared to the same time last year.

The following construction inputs experienced price decreases in November:

•Prepared asphalt, tar roofing and siding prices were down 3.8 percent for the month and 0.3 percent year over year.

•Crude petroleum prices fell 10.3 percent on a monthly basis but are up 0.9 percent year over year.

• Crude energy prices decreased 5.7 percent in November but are up 0.6 percent compared to the same time last year.

•Concrete products prices were flat in November and are up 2.8 percent year over year.

To view the previous Producer Price Index report, click here.

ABC Reports: Construction Materials Prices Fall Slightly In October

CEU2“Despite ongoing expressions of concern regarding inflation due to stimulus measures being conducted by the U.S. Federal Reserve and other major central banks around the world, the data continue to reflect remarkable stability in construction materials prices.” —ABC Chief Economist Anirban Basu.

PPI-November_2013Construction materials prices fell 0.2 percent in October and are down 0.3 percent year over year, according to the Nov. 21 Producer Price Index released by the Department of Labor. Nonresidential construction materials are down 0.5 percent for the month and are unchanged from the same time one year ago.

“We continue to observe a lack of significant inflationary pressures both globally and nationally,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Despite ongoing expressions of concern regarding inflation due to stimulus measures being conducted by the U.S. Federal Reserve and other major central banks around the world, the data continue to reflect remarkable stability in construction materials prices.” ;

Overall, the nation’s wholesale goods prices expanded 1 percent in October and are up 2 percent year over year. “Inflation as measured by the Producer Price Index and other indices remains well within Federal Reserve tolerances, suggesting that the institution’s bond purchasing program is likely to remain fully intact for now,” said Basu.

“However, there is no guarantee that the stability of materials prices will persist,” Basu said. “The situation in Iran appears to be heating up and that could ultimately translate into commodity supply interruptions, boosting prices in the process. Moreover, U.S. economic growth is expected to accelerate next year, which, all things being equal, tends to push input costs higher.”

The following materials prices increased in October:

• Fabricated structural metal product prices are up 0.4 percent and have risen 0.4 percent on a year-over-year basis.

• Softwood lumber prices climbed 1.2 percent and are 16.2 percent higher than one year ago.

• Natural gas prices expanded 0.2 percent and are 15.3 percent higher than one year ago.

• Concrete products edged up 0.1 percent and are up 2.9 percent on a yearly basis.

A number of key construction inputs did not experience price increases in October.

• Nonferrous wire and cable prices fell 0.7 percent on a monthly basis and are down 3.4 percent from October 2012.

• Prices for plumbing fixtures and fittings were unchanged for the month and are up just 1.5 percent on a year-over-year basis.

• Prices for prepared asphalt, tar roofing and siding declined 1.6 percent for the month and are only 1 percent higher than a year ago.

• Iron and steel prices are unchanged on both a monthly and annual basis.

• Crude petroleum prices fell 5.2 percent for the month, but are up 7.5 percent from October 2012.

• Crude energy prices fell 3.6 percent for the month, but are 7.3 percent higher year over year.

• Steel mill products prices remained unchanged and are 2.4 percent lower than one year ago.

To view the previous Producer Price Index report, click here

ABC Reports: Construction Materials Prices Dip 0.1 Percent in June

CEU2“With the global economy beginning to tread water, the good news is materials prices are unlikely to rise significantly during the next several months.” —ABC Chief Economist Anirban Basu.

Employment-July2013.pngSummary

Construction materials prices decreased 0.1 percent in June and are virtually unchanged for the quarter, according to the July 12 Producer Price Index report by the U.S. Labor Department.

Year over year, construction materials prices are 1.5 percent higher. Nonresidential construction materials prices were unchanged in June, rose 0.1 percent for the quarter and increased 1.2 percent during the last 12 months.

Following an 8.2 percent drop in May, softwood lumber prices fell 5.6 percent in June and are down 11.2 percent for the quarter. However, they remain 8 percent higher compared to the same time last year. Iron and steel prices decreased 0.9 percent for the month, and are down 3.4 percent for the quarter and 7.2 percent on a year-over-year basis. Steel mill prices follow a similar trend: down 0.7 percent for the month, down 1.6 percent for the quarter, and 8.1 percent lower than June 2012.

Prices for concrete products, fabricated structural metal products, and plumbing fixtures and fittings were all flat for the month. Year over year, concrete product prices are up 3 percent, fabricated structural metal product prices are down 0.8 percent, and plumbing fixtures and fitting prices are up 1 percent.

Crude energy materials prices kicked off the summer with a 0.3 percent increase in June. They increased 9.2 percent for the quarter and are up 21.5 percent from one year ago. Nonferrous wire and cable price rose 0.4 percent for the month, but were down 3.9 percent overall for the quarter and are down 2.1 percent during the last 12 months. Prices for prepared asphalt, tar roofing and siding rose 1.7 percent in June, increased 5.5 percent in the second quarter, and are 3 percent higher than the same time last year.

Overall, the nation’s wholesale goods prices increased 0.8 percent in June, rose 0.6 percent during the second quarter, and are 2.5 percent higher than one year ago.

Analysis

“Today’s headline number for construction materials prices indicates little movement,” said Associated Builders and Contractors Chief Economist Anirban Basu. “But, when viewed as individual components on a monthly or quarterly perspective, there is evidence of volatility.

“This volatility has been most apparent with softwood lumber, a category in which prices fell 5.6 percent in a single month,” Basu said. “The drop is likely attributable to an increase in softwood lumber production as opposed to a decline in demand.

“Price volatility also has been apparent in recent months in crude energy categories, iron and steel, and in prepared asphalt,” added Basu.

“With the global economy beginning to tread water, the good news is materials prices are unlikely to rise significantly during the next several months,” Basu said. “However, even as global economic growth slows, equity and certain other asset prices have been on the rise due in large measure to accommodative monetary policy.

“It is always possible that investors will begin to shift greater focus toward commodities going forward, which could drive materials prices higher even in the absence of accelerating global economic growth or significant rebound in America’s nonresidential construction industry,” said Basu.

To view the previous PPI report, click here.

ABC Reports: Construction Materials Prices Flat In March

CEU2“Nonresidential construction materials prices would have risen for the month, but were offset by the decline in petroleum prices.” —ABC Chief Economist Anirban Basu.

Producer Prices-April2013Summary

National construction materials prices were flat in March and are 0.9 percent higher year over year, according to the Labor Department’s April 12 Producer Price Index report. Nonresidential construction materials prices slipped 0.2 percent for the month, but are up 0.2 percent compared to one year ago.

Softwood lumber prices jumped 4.4 percent for the month and are 30.1 percent higher from one year ago. Prices for nonferrous wire and cable increased by 2.2 percent in March, but remain 1.8 percent lower from last March. Iron and steel prices increased 1.4 percent, but are down 9.4 percent on a year-over-year basis. Prices for prepared asphalt, tar roofing and siding were up 0.3 percent for the month and are 8.6 percent higher than one year ago. Concrete product prices inched up 0.1 percent in March and are up 2.1 percent over the past twelve months.

In contrast, crude energy materials fell 8.5 percent in March, largely driven by a drop in crude petroleum prices, and are down 14.1 percent for the month. Year over year, prices for crude energy materials are down 1.9 percent. Steel mill product prices decreased 0.4 percent for the month and are 9.5 percent lower than one year ago. Prices for plumbing fixtures and fittings slipped 0.3 percent in March, but are 1 percent higher from the same time last year. Prices for fabricated structural metal products dipped 0.3 percent from the previous month and are down 0.2 percent on a year-over-year basis.

Overall, the nation’s wholesale goods prices decreased 0.6 percent in March, but are 1.1 percent higher than the same time last year.

Analysis

“On the surface, it appears construction materials prices were well behaved in March,” said Associated Builders and Contractors Chief Economist Anirban Basu. “However, ABC has been warning for several months about materials cost volatility due to a variety of forces, including faster global economic growth and significant shifts in currency values and exchange rates.

“Below the headline numbers, there is significant volatility in several key materials segments,” remarked Basu. “For example, the rapid price increases of softwood lumber, along with iron and steel products, exhibited volatility.

“Nonresidential prices would have risen for the month, but for the decline in petroleum prices,” Basu stated. “In other words, there was volatility in the construction materials prices, but the steep decline in petroleum prices offset the increase in other categories.

“ABC anticipates growing construction materials price volatility for much of this year,” declared Basu. “The general expectation is that construction materials prices will increase, due to overall rising asset prices in the local economy.”

To view the previous Producer Prices report, click here.

ABC Reoprts:Construction Materials Prices Increase 0.7 Percent In January

CEU2 “Oil prices are not expected to fall significantly anytime soon, and they could continue their upward trajectory in the summer months.” —ABC Chief Economist Anirban Basu.

Producer Prices - February 2013

 

Summary

National construction materials prices increased 0.7 percent in January, with year-over-year prices rising 1.3 percent. Nonresidential construction materials prices were up 0.6 percent for the month and 0.8 percent during the last 12 months.

Several non-metal product prices trended higher in January. Softwood lumber prices jumped 6.7 percent for the month and are now 24.8 percent higher than one year ago. Prices for prepared asphalt, tar roofing and siding increased 0.9 percent for the month and are 0.7 percent higher than last January. Concrete product prices increased 0.3 percent compared to December and are 2.3 percent higher than one year ago.

Metal material prices varied in January. Nonferrous wire and cable prices edged 0.2 percent higher for the month and are up 0.2 percent year over year. Prices for plumbing fixtures and fittings were flat for the month, but are 1.3 percent higher compared to the same time last year. Iron and steel prices decreased 0.2 percent in January and are 10.1 percent lower than the same time last year. Steel mill prices slipped 0.1 percent for the month and are 8.3 percent lower than one year ago. Prices for fabricated structural metal products were down 0.4 percent in January, but are up 0.4 percent year over year.

Crude energy materials prices increased 2.3 percent in January, driven by an 8.1 percent increase in crude petroleum prices. Year over year, crude energy materials prices are down 1.5 percent. Overall, the nation’s wholesale goods prices increased 0.2 percent in January and are 1.4 percent higher than the same time last year.

Analysis

“We have been anticipating an increase in construction materials price volatility for several months,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “Today’s data indicates that ABC’s prediction of increased volatility in 2013 after a period of unusually stable prices in 2012 is proving to be correct.

“Some of the materials experiencing instability relate more closely to residential construction,” Basu said. “Because of the severe downturn in residential activity, a certain level of productive capacity was removed from the marketplace. With demand for softwood lumber and other materials associated with residential construction now rising, prices also are moving higher. Moreover, increased exports to China have contributed to the recent surge in softwood lumber prices.

“The other major impetus for volatility in January was petroleum,” Basu said. “As many American consumers can attest, oil and gasoline prices have been rising recently. With the Indian and Chinese economies expected to expand more than 6 percent and 8 percent, respectively, and with part of the of the industrial world stabilizing, oil prices are not expected to fall significantly anytime soon, and they could continue their upward trajectory in the summer months.

“The bottom line is materials prices likely will continue to be more volatile this year,” Basu said.

To view the previous PPI report, click here.