The latest report from Statistics South Africa reveals a diverse trend in construction material prices for May 2024. While some materials experienced significant price increases, others saw moderate declines.
Monthly Increases and Decreases
Metal Roofing and Electrical Reticulation:
- Metal roofing (aluminium) saw a notable increase of 7.0%. This rise is attributed to a 7.8% change in the SEIFSA index for aluminium products 99.7 EC grade rod.
- Electrical reticulation costs climbed by 5.9%, driven by an 8.7% rise in the SEIFSA index for copper 7.9 mm rod and a 7.8% increase in the SEIFSA index for aluminium products.
Non-Metal Roofing and Reinforcement:
- Non-metal roofing prices decreased by 0.8% due to a 2.0% decline in the PPI index for roof tiles.
- The reinforcement index dropped by 0.9%, influenced by a 1.2% decrease in the PPI index for reinforcing metal work.
Construction Input Price Index (CIPI)
Overall Construction:
- The annual change for total construction was 6.9% in May 2024, with a monthly increase of 0.5%.
Noteworthy Monthly Changes:
- Bituminous mixtures: +5.5%
- Construction pipes, tubes, and fittings: +5.4%
- Electrical components: +5.0%
- Electrical cable: +3.1%
- Construction electric motors, generators, or transformers: -1.1%
- Cement: -1.2%
- Ready-mix concrete: -1.2%
Equipment and Engineering Indices
Mining and Construction Plant and Equipment:
- The annual change for plant and equipment was 6.4%, with no monthly change.
Mechanical and Electrical Engineering:
- Mechanical engineering input prices increased annually by 4.6% and by 0.1% month-on-month.
- Electrical engineering input prices rose by 8.8% annually and by 1.8% month-on-month.
Civil Engineering Material Prices:
- The total index for civil engineering materials saw an annual increase of 7.4%, with a 0.1% rise month-on-month.
Detailed Analysis
CPAP Work Group Indices:
- Alterations, earthworks, and piling showed minor changes.
- Notable increases were observed in metal roofing, masonry, and ceilings.
- Electrical installations and reticulation saw significant monthly increases.
CIPI Material Purchases:
- Building installations and completion recorded notable annual and monthly increases.
- Renting of construction equipment also showed an 8.5% annual increase.
Industry-Wide Material Purchases:
- Construction stone, aggregate stone, and builders’ carpentry of wood experienced increases.
- Cement and ready-mix concrete prices declined slightly, while electrical components and cables saw notable increases.
Conclusion
The construction material price indices for May 2024 reflect a mixed trend, with significant increases in certain categories like metal roofing and electrical reticulation, while others, such as non-metal roofing and reinforcement, experienced slight declines. This diverse trend highlights the varying pressures and changes within South Africa’s construction industry.