Many material prices have stabilized, which is welcome news for the industry. As per the latest Producer Price Index report, construction input prices fell 0.6% in December. In particular, concrete stands out as the exception, with its costs continuing to surge while prices of other materials have reached a stable or plateaued state. Read on to find out more!
Gypsum Building Materials
The PPI for gypsum building materials decreased by 0.3% in December and has remained unchanged since March 2023.
Steel Mill Products
In December, there was a 3.3% increase in prices for steel mill products, marking the first upturn since May. The annual average prices for steel mill products experienced a decline of 16.1% in 2023, following an increase of 8.7% in 2022 and the remarkable 90.3% surge seen in 2021.
In December, the PPI for softwood lumber (seasonally adjusted) decreased by 2.3%, marking the third consecutive decline and the fourth out of the past five months.
The year-over-year price growth has slowed for the second consecutive month, dropping from 9.3% in November to 7.8% in December. Despite the drop in November and December, concrete prices remained the only one that continued to rise throughout the year.
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