Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/a6f40369cc32e80f576560806a909f2e.jpg)
AGC: 'Construction Material Costs Remain Out of Control'
Written by David Schollaert
October 14, 2021
The prices contractors pay for construction materials rose further in September despite a recent decline in a few materials’ prices. The costs still far surpass the prices contractors charged in the 12-months ending in September, reports the Associated General Contractors of America (AGC) in its latest analysis of government data.
“Construction materials costs remain out of control despite a decline in some inputs last month,” said Ken Simonson, the association’s chief economist. “Meanwhile, supply bottlenecks continue to worsen.”
The producer price index for new nonresidential construction – a measure of what contractors say they would charge to erect five types of nonresidential buildings – rose 5.2% over the past 12 months, despite a decline of 0.9% month on month. The prices that producers and service providers such as distributors and transportation firms charged for construction inputs jumped 17% year on year, Simonson said.
There were double-digit percentage increases in the selling prices of most materials used in every type of construction with the exclusion of lumber and plywood, which fell 12.3% during the past 12 months.
The producer price index for steel mill products surged by 134% compared to last September. The index for copper and brass mill shapes rose 39.5% and the index for aluminum mill shapes increased 35.1%. The index for a number of other construction-related products also saw double-digit percentage increases, including plastics, gypsum, insulation, prepared asphalt and tar roofing, and siding products.
In addition to increases in materials costs, transportation and fuel costs also spiked. The index for truck transportation of freight jumped 15%, while fuel costs have also jumped.
Many contractors are experiencing extreme delays or uncertainty about delivery dates on variuous types of construction materials, as supply-chain bottlenecks continue. As a result, the AGC has urged Washington officials and the Biden administration to end tariffs on key construction materials and for an all-out effort to help ports and freight transportation businesses move goods more quickly
“The tariffs on lumber, steel, aluminum, and many construction components have added fuel to already overheated prices,” said Stephen Sandherr, AGC’s CEO. “Ending the tariffs would help immediately, while other steps should be taken to relieve supply-chain bottlenecks.”
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_DS_headshot.png-150x150.jpg)
David Schollaert
Read more from David SchollaertLatest in Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/coils2.png)
US steel imports slipped in August after rising in July
July represents the second-lowest monthly rate for steel imports so far this year.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/steel_trade.png)
CRU Insight: Decarbonization will reshape global steel trade flow
This CRU Insight explores how decarbonization will play a significant role in redefining steel trade patterns by shifting regional competitiveness and increasing steel demand needs.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/price_question.png)
Steel Summit 2024: Leading analysts forecast coming year for steel
Leading industry analysts on Monday discussed steel prices and how they will be impacted by trade policy, consolidation, mill discipline, November’s elections, and more.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: Raw steel output jumps, capability surpasses 80%
Having risen for three weeks in a row, weekly production is now at the highest rate seen since February 2023.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/worldsteel_logo.png)
Monthly steel output falls in China, rises in RoW
Global steel output fell 5% in July according to World Steel Association’s (worldsteel) latest release. Total steel mill production around the world tallied up to 152.8 million metric tons (mt) for the month of July, the second-lowest monthly rate seen this year.