flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC: Construction material prices rise again in May

Building Materials

ABC: Construction material prices rise again in May

Nonresidential construction price gains were largely driven by iron and steel prices and steel mill product prices.


By ABC | June 16, 2016

Steel rods. Photo: PortlandBolt/Creative Commons.

Construction input prices expanded by 0.7% in May and have now expanded for three consecutive months according to an analysis of the Bureau of Labor Statistics Producer Price Index released by Associated Builders and Contractors (ABC). The rise follows eight consecutive months during which construction input prices fell; prices remain 3.4% below their year-ago level. 

Nonresidential construction input prices expanded by 0.9% in May, but are still 3.5% below their year-ago level. Price gains were largely driven by iron and steel prices and steel mill product prices, which expanded 5.8% and 4.6% for the month, respectively. 

"After falling sharply during all of 2015 and into the early months of 2016, an increase in global commodities prices had to happen as markets firmed," said ABC Chief Economist Anirban Basu. "While much attention has been given to the recent rise in oil prices to around $50 per barrel, other commodity prices have also experienced a resurgence, including iron ore.  

"That said, the global economy continues to disappoint relative to expectations established at the start of the year," said Basu. "Higher prices may stimulate new rounds of production, including in energy markets, but the implication is that prices are unlikely to rise smoothly or dramatically going forward. Analyst views regarding the direction of commodity prices diverge wildly. While supply and demand play a role in fashioning commodity prices, so too does the value of the U.S. dollar. U.S. interest rates remain low and in many cases have been declining. The dollar has correspondingly weakened in recent weeks. Should that continue, commodity price increases could be sharper than we presently anticipate."

Nine key input prices expanded or remained unchanged in May on a monthly basis:

  • Crude petroleum prices expanded 0.6% from April 2016, but are down 32.5% from May 2015.
  • Unprocessed energy material prices expanded 0.9% on a monthly basis, but have fallen 23.1% on a year-ago basis. 
  • Prices for steel mill products expanded 4.6% from a month ago, but are down 5.2% on a yearly basis. 
  • Iron and steel prices expanded 5.8% month-over-month, but are down 2% year-over-year. 
  • Softwood lumber prices expanded 2.2% for the month and 6.3% from May 2016. 
  • Fabricated structural metal prices remained unchanged month-over-month and are down 1.9% year-over-year.
  • Prices for plumbing fixtures and fittings expanded 0.2% for the month and are up 0.3% from the same time last year. 
  • Prices for prepared asphalt and tar and roofing and siding products expanded by 0.4% month-to-month and 0.7% year-over-year. 
  • Natural gas prices rose 2.9% for the month, but are down 23.5% from the same period one year ago. 

Two key input prices declined on a monthly basis:

  • Nonferrous wire and cable prices fell 1.3% on a monthly basis and have fallen 9.2% on a yearly basis. 
  • Concrete product prices inched down by 0.1% month-over-month, but are up 3% year-over-year.

Related Stories

| Jul 10, 2013

TED talk: Architect Michael Green on why we should build tomorrow's skyscrapers out of wood

In a newly posted TED talk, wood skyscraper expert Michael Green makes the case for building the next-generation of mid- and high-rise buildings out of wood.

High-rise Construction | Jul 9, 2013

5 innovations in high-rise building design

KONE's carbon-fiber hoisting technology and the Broad Group's prefab construction process are among the breakthroughs named 2013 Innovation Award winners by the Council on Tall Buildings and Urban Habitat.

| Jun 28, 2013

Calculating the ROI of building enclosure commissioning

A researcher at Lawrence Berkeley National Laboratory calls building enclosure commissioning “the single-most cost-effective strategy for reducing energy, costs, and greenhouse gas emissions in buildings today.”

| Jun 27, 2013

Thermal, solar control designs can impact cooling loads by 200%, heating loads by 30%

Underestimating thermal bridging can greatly undermine a building’s performance contributing to heating load variances of up to 30% and cooling load variances of up to 200%, says the MMM Group.

| Jun 19, 2013

Florida is latest battleground over LEED standards centered on certified wood

A nationwide battle over forest certification standards continues to be played out nationally and in Florida with legislation passed this month. 

| Jun 14, 2013

Purdue, industry partners test light steel framing for seismic safety

A partnership of leading earthquake engineering researchers from top U.S. and Canadian universities and design professionals from the steel industry have begun the final phase of a three-year project to increase the seismic safety of buildings that use lightweight cold-formed steel for their primary beams and columns. 

| Jun 13, 2013

Health Product Declaration Collaborative names Knott as Executive Director

John L. Knott Jr. has been named as the Health Product Declaration Collaborative’s (www.hpdcollaborative.org) first Executive Director following a national search. The Health Product Declaration Collaborative (HPDC) is a customer-led standards-setting organization committed to the continuous improvement of the building industry’s environmental and health performance, through transparency and innovation in the building product supply chain.

| Jun 4, 2013

SOM research project examines viability of timber-framed skyscraper

In a report released today, Skidmore, Owings & Merrill discussed the results of the Timber Tower Research Project: an examination of whether a viable 400-ft, 42-story building could be created with timber framing. The structural type could reduce the carbon footprint of tall buildings by up to 75%.

| May 21, 2013

7 tile trends for 2013: Touch-sensitive glazes, metallic tones among top styles

Tile of Spain consultant and ceramic tile expert Ryan Fasan presented his "What's Trending in Tile" roundup at the Coverings 2013 show in Atlanta earlier this month. Here's an overview of Fasan's emerging tile trends for 2013.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021