Construction material prices dropped 0.1% in April and are up 0.1% on a year-over-year basis, according to Associated Builders and Contractors. Prices in April were 41.3% higher than in February 2020.
Nonresidential construction material prices rose 0.2% from March to April and increased 0.2% compared with one year ago. Softwood lumber prices are up 8.6% year over year and down 2.6% from March to April. Iron and steel prices are up 2% year over year and up 2.3% for the month. Natural gas fell 7.1% from March to April and is up 142.7% year over year. Crude petroleum fell 4.9% for the month and is down 22.6% year over year.
鈥淐onstruction input prices declined in April, but that was largely due to falling energy prices,鈥 said ABC Chief Economist Anirban Basu. 鈥淢aterials directly affected by tariffs saw sharp price increases for the month. Steel mill product prices, for instance, rose 5.9%, while copper wire and cable prices increased 5%.
鈥淲hile recent developments have reduced tariff-related uncertainty, the 25% tax on steel and aluminum imports remains in place, and a sudden resumption in imports from China could cause an increase in shipping prices,鈥 Basu continued. 鈥淒espite the upward pressure that these factors will put on input prices, just 1 in 4 contractors expect their profit margins to contract over the next six months, according to ABC鈥檚 Construction Confidence Index.鈥
