Materials prices decline

According to Reed Construction Data, the construction materials price index dropped 7.8 percent from September to December and is expected to decline, albeit more slowly, through the winter as worldwide commodity demand continues to shrink. Commodity prices fell in January again for metals, lumber and some energy based products because construction activity and manufacturing production are now declining in most major countries and commodity inventories are well above normal levels. Preliminary data put the January price decline at more than 20 percent for aluminum, 10 percent for steel and 10 percent for lumber, 7 percent for diesel, less than 5 percent for copper but no decline for cement. Futures prices and inventory levels suggest that spot prices will continue to fall for several more months. Lumber futures prices are 30 percent below spot prices. Crude oil storage facilities are full with some product now being stored on anchored tankers. Your comment?