Rock Products

MAY 2018

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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30 • ROCK products • May 2018 Capstone Update Construction input prices decreased slightly in December 2017 and are up 5.5 percent on a year-over-year basis, according to an Associated Builders and Contractors (ABC) analysis of data recently released by the U.S. Bureau of Labor Statistics. "Given stronger global and domestic economic growth, elevated liquidity in international financial markets, bur- geoning trade disputes and efforts by certain energy producers to limit supply growth even as prices rise, one would have expected a sharper increase in construction materials prices in December," said ABC Chief Economist Anirban Basu. "The fact that inflation remains contained should be viewed by most contractors as very good news. Not only are many contractors vulnerable to sudden increases in certain materials prices, but faster inflation can trigger higher interest rates, which ultimately reduce the demand for construction services." 3 CONSTRUCTION MATERIALS UPDATE Figure 5: Producer Price Index Source: US Bureau of Labor Statistics Cement 4 • Portland cement consumption (21.1 million metric tons) increased by 3.3 percent in Q4 2017 compared to Q4 2016. • The average selling price per ton has increased 26.3 per- cent from 2012 to 2017. • 2017 volume (84.3 million metric tons) increased 2 per- cent over 2016. AGGREGATES MATERIALS Industry results in Q4 2017 showed increases in volume com- pared to Q4 2016 for cement (3.3 percent), sand and gravel (9.9 percent) and crushed stone (3.7 percent). Ready-mix con- crete volume increased 2.4 percent year-over-year in 2017. Cement Volume Cement Price Ready-Mix Concrete (RMC) • RMC prices increased 4.5 percent in 2017 but were down 0.8 percent when compared to Q3 2017. Price data is computed from the average RMC net selling prices of U.S. Concrete, Vulcan Materials, Martin Marietta and Eagle Materials. •  Ready-mix concrete volume increased 2.4 percent year- over year reaching 351 million cu. yds. Ready-Mix Concrete Volume Ready-Mix Concrete Price Sources: NRMCA Industry Data Survey, Average RMC selling price of U.S, Concrete, Vulcan Materials, Martin Marietta Materials & Eagle Materials

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