Materials Trends
Prices are updated monthly by ENR's price reporters who call a single source for each product in 20 U.S. cities. The price represents that paid by a contractor for a specified large order. Monthly prices appear on the weekly rotating cycle.
Cement/Concrete/Aggregates
Prices for 21 products covering asphalt, cement, aggregates, concrete, brick, concrete block and mason's lime.
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Concrete Prices Start to Soften
Concrete prices are starting to soften, but recent declines are modest compared to the sharp declines in demand in the housing market. In May, the Bureau of Labor Statistics’ producer price index for ready-mix concrete slipped 0.1%, the fourth consecutive monthly drop, which combined for a 1.9% decline in prices. Despite the recent cuts, the ready-mix concrete PPI remains 2.7% above May 2008’s level. The PPI for cement dropped 1.3% in February before bouncing back 0.8% between March and April. However, that rebound was rolled back 0.4% in May, leaving the cement PPI just 0.4% above last year’s level.
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Pipe
Prices for 20 pipe products covering reinforced concrete pipe, corrugated steel pipe, vitrified clay pipe, PE underdrain, PVC sewer and water pipe, ductile iron pipe and copper water tubing.
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Pipe Prices Pause After Declines
Prices for most construction pipe products showed little movement in June, after declining through most of the first half of 2009. Prices for ductile iron pipe generally held steady after sharp declines during January and March (see chart below). Prices for 8-in. and 12-in. DIP are between 1% and 2% below a year ago. Concrete pipe prices fell about 1% this month but remain between 2% to 6% higher than June 2008’s level. Copper water tubing prices have seen some of the sharpest declines due to the depression in the housing market. ENR’s 20-city average price for copper tube is down 6% to 10% from a year ago.
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Lumber/Drywall
Prices for 18 products covering lumber, plywood, plyform, particle board, gypsum wallboard and insulation.
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Lumber Price Declines Slow
Lumber prices may finally be nearing rock bottom after five years of declines. ENR’s 20-city average price for three types of 2 X 4s held steady this month, with the average wholesale price to contractors ranging from 3% to 5% below a year ago. This is in contrast to year-to-year June declines of 2% in 2008 and 10% in both 2007 and 2006. In May, mill prices for framing lumber tracked by Eugene, Ore.-based Random Lengths fell 4.8%, wiping out a modest increase in April. The Random Lengths framing-lumber mill price index in May was 29% lower than a year ago and 57% below may 2004’s peak level.
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Steel
Prices for 16 products covering structural steel, reinforcing bar, steel plate, metal lath, aluminum sheet, stainless steel sheet and plate and H-piles.
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Steel Prices Continue To Fall
Weak demand continues to drive down prices for most steel products. In June, ENR’s 20-city average price for wide-flange, channel and I-beams fell between 0.6% and 1.7%. This dowturn follows nine months of steep declines after last summer’s price spike, which peaked with a 20% year-to-year gain last August. That spike has been all but wiped out as structural steel prices have fallen 5% to 8% below June 2008’s level. Prices for reinforced concrete bar have followed a similar trend and are now 7% below a year ago. Stainless-steel prices fell over 2% this month and are down 14% for the year.
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Materials Price Index
The Materials Cost Index is the materials component of ENR’s building and construction cost indexes. It tracks the weighted price movement of structural steel, portland cement and 2 X 4 lumber.
