Material Price Movements to March 2024

Construction material prices have been relatively stable in Q1 2024, with the exception of upward pressure on concrete, reinforcement and insulation prices.

The macro view sees the major commodities remaining relatively stable, apart from scrap metal which was up 38% in the quarter. Crude oil is up 14% in the YTD, but imported gas is down 30%. Significant increases are seen in shipping costs, with costs rising over 120% in the YTD and 62% since March 2023. Shipping volumes through the Red Sea remain circa 50%+ below 2023 average with shipping volumes up on the two week longer route around the Cape of Good Hope.

Looking ahead for Q2 and Q3 of 2024, we anticipate the reintroduction of excise duty on 1st April will exert upward pressure on prices. A further 3.5% SEO (Special Exemption Order) increase will come into effect in August 2024.  

For comprehensive analysis of 2023 material price changes and commodities price trends look check out our suite of InfoCards 2024.

If you’d like to have a chat on any further information covered please don’t hesitate to contact us.

You can view our previous newsletter narratives on Material Price Increases on our Insight Archive page.