Structural Steel Prices Up 4% In February, No Sign Of Slowing Down
Commodity prices are still increasing, pressuring contractors’ margins. Construction materials continue to increase, now up 1.1% from January. As prices have risen at a 12% annual pace in the last three months, they are now up 6.1% higher than last year. Predictions are for another small increase in the March price index, according to Reed Construction Data.
As the $US dollar is down 5% in the last year, this raises the cost of imported commodities. Combine this with demand soaring from developing countries, especially China, India and Brazil with current GDP growth in the 7-9% range. Structural steel prices are up over 4% in February, showing no sign of slowing down until supply catches up with demand. Also, total building costs are increasing from to about a 2% annual rate, up from almost 0%.