Building materials prices in the US continued to climb in March, according to the latest Producer Price Index release by the US Bureau of Labor Statistics Tuesday. OSB-led price increases, up +9.3% since February, while the indexes for ready-mix concrete (+3.3%), softwood lumber (+2.2%), structural steel (+2.0%), and gypsum products (+1.1%) also moved higher.

US Construction Materials Prices

The +9.3% increase in OSB prices follows February’s +3.1% gain and is the largest monthly climb since October 2017 (+14.1%), said the US Bureau of Labor Statistics Tuesday.  After a three-month downward trend, OSB prices have risen +12.6% over the past two months.
Ready-mix concrete prices rose +3.3% over the month, the largest percentage increase since January 2006.  Prices had increased at a remarkably stable pace until last month.

Since the end of the Great Recession, the Ready-mix concrete price index has increased +0.2% each month, on average.  In fact, over the last 15 years, only twice has the monthly change in the index been greater than +3%.  During that period, the monthly change exceeded 2% and 1% in just four and 18 months, respectively.
Prices paid for hot-rolled structural steel increased +2% in March and +7.2% in 1Q 2018, marking the largest quarterly increase since 1Q 2011.  Although increases have been steep of late, the price level remains below its most recent peak in 2015.