Iron and steel prices pushed upward by just under 4% in February, representing the largest price increase for any commodity nationally last month, according to a new survey.
Providing an analysis of the most recent data released by the Bureau of Labor Statistics, a new analysis produced by the Associated Builders and Contractors puts the price increase for iron and steel from January to February at 3.9%.
No other commodity saw such an increase, although softwood lumber was up by 2.8% and sand, gravel and crushed stone came with a 2.1% jump.
In looking at the numbers, Anirban Basu, chief economist with ABC, said the iron and steel increase came about as the result of “tariffs providing domestic producers with increased pricing power.”
The one-month iron and steel price gain was particularly dramatic when compared with the overall one-year trend since February of 2024 that shows a price decrease of some 13%.
Prospects for a slowdown in the price of steel seem unlikely for the time being, according to the site Oil Price, which noted last that “as of mid-March, steel prices remained decidedly bullish and in search of a new peak as U.S. tariffs set the market on fire.”
The price pressure has been particularly fueled by mills that appear to be restricting output to keep the market tight. According to the American Iron and Steel Institute, steel production is currently more than 6% below its early 2024 peak.
The iron and steel price hike comes as the Trump administration has announced a 25% tax on all steel and aluminum coming into the U.S.
February price trends, however, were not all bad for contractors, according to the ABC survey, which showed a decline in construction machinery and equipment, crude petroleum, natural gas, and prepared asphalt prices.
Perhaps reflecting the iron and steel increases, Basu noted a new ABC construction confidence index showing that 23% of responding builders “expect their profitability to decline over the next six months, the highest share since October 2024.”
March 25, 2025
By Garry Boulard
Photo courtesy of Unsplash
