Materials Prices Down Overall as Tariffs Cause Steel Spike
The slight dip was spurred by a decline in energy prices.
Chart courtesy U.S. Bureau of Labor Statistics
Construction materials prices declined 0.1% in April when compared to March, according to the Price Produce Index (PPI) data released May 15 by the U.S. Bureau of Labor Statistics. Prices are up 0.1% since April 2024 and 41.3% since February 2020.
The decline “was largely due to falling energy prices,” Anirban Basu, chief economist at Associated Builders and Contractors (ABC), said in a press release. Natural gas prices fell 7.1% while unprocessed energy prices decreased 5%. Crude petroleum dropped 4.9% in the same period.
Despite the overall downswing, steel and copper prices experienced spiking prices in the wake of tariff implementation. Prices for steel mill products rose 5.9% for the month, while rates for copper wire and cable increased 5% and iron and steel prices were up 2.3%.
“Materials directly affected by tariffs saw sharp price increases for the month,” said Basu. “While 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.”
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