Steel and asphalt decline, but remain at high levels

Concrete prices in May remained nearly flat for the second straight month with a modest 0.1% gain, according to the Bureau of Labor Statistics' Producer Price Index.

Steel and asphalt declined, 1.3% and 0.2%, respectively, but remain at high levels with steel prices increasing 13.9% during the past year. Asphalt prices rose 11.2% in the last 12 months.

Concrete prices have changed at a slower rate, with a 4.5% increase since May 2006.

Lumber prices continued to decline with a 12.5% negative change from 2006.

According to the spring PCA Cement and Construction Forecast, the relative price improvements of concrete compared to other materials that materialized during the fourth quarter of 2006 and has continued through recent data collections will increase national cement intensity in 2007. Cement intensity refers to the tons of cement per dollar of construction activity.