Several commodities
used in construction continue to rise rapidly in price, including diesel fuel,
natural gas, copper and steel.
Several commodities used in construction continue to rise
rapidly in price, including diesel fuel, used for powering offroad equipment,
construction vehicles, and mining, manufacturing and transport of many materials;
natural gas, which is the feedstock for polyvinyl chloride (PVC) and other
construction plastics; copper; and steel. The national average retail price of on-highway diesel fuel jumped
another 16 cents per gallon this week to a record of $3.82, up 42% from a year
ago, the Energy Information Administration reported on Monday. The agency
predicted in its March “Short-Term Energy Outlook,” issued on Tuesday, “Diesel
fuel prices, which averaged $2.88 per gallon last year, are projected to
average $3.45 and $3.22 per gallon, respectively, in 2008 and 2009….The Henry
Hub spot price [for natural gas] averaged $8.76 per mcf [thousand
cubic feet] in February, $0.51 per mcf more than the average January spot
price. Cold weather so far in the first
quarter has kept pressure on prices, which are expected to decline as space
heating demand begins to wane in April.
On an annual basis, the Henry Hub spot price is expected to average
about $8.18 per mcf in 2008 and $7.95 per mcf in 2009.”