Construction Materials Price Index Declines for Seventh Consecutive Month

 

April?EUR??,,????'???s price drop was led by asphalt roofing (-11.3%), steel pipe and tube (-7.9%), structural steel (7.3%) and plywood (-3.3%).

Construction material prices are lower than a year ago, which gives contractors the opportunity to secure bids and make profits. The construction materials price index fell 0.4% in April extending the decline since the September peak to 10%. The 2008 spike in prices has now been more than reversed. The materials price index stands at 3.6% lower than a year ago.

The price index is expected to decline slowly for a few more months but be rising modestly again by the end of the year and rising more quickly next year, perhaps up 4 to 5% from the 2009 average. The only significant April price increases were for diesel (20.5%) and nonferrous pipe and tube (20.9%) which had both declined in March. Rising scrap and ore prices mean rising nonferrous product prices for at least several months. – Courtesy of Reed Construction Data