Unstable Prices, Weak Economy Continue to Affect Industry
March 14, 2012

by Sahely Mukerji, smukerji@glass.com

As construction materials prices increased 0.4 percent in January, flat glass prices went down 1.0 percent from December 2011 to January 2012, according to the January Producer Price Index. However, the unadjusted percent change for flat glass prices from January 2011 to January 2012 was up 0.7 percent.

The export price for glass and glassware went down 0.3 percent from January 2011 to January 2012, according to the January Import and Export Price Indexes, while the import price for the same went up 4.4 percent during the same period.

"Glass and glassware includes float glass, safety glass, lab glass and a range of other glass products," says Edwin Bennion, an economist at the International Price Program office in Washington, D.C.

From December 2011 to January 2012, the export price for glass and glassware went down 0.1 percent, while the import price for the same went up 0.6 percent during the same period.

Increased turmoil in the Middle East might be affecting the U.S. construction materials prices, according to the economists at the Associated Builders and Contractors Inc. (ABC) of Arlington, Va. The PPI indicates materials prices are 5.4 percent higher than one year ago. Nonresidential construction materials prices were up 0.4 percent for the month and are 4.8 percent higher compared to the same time last year.

"Because oil prices have been edging higher in recent weeks, overall construction materials prices are trending up as well," says Anirban Basu, chief economist at ABC. "Construction industry activity across the nation has been edging higher. ... Still, the gradual recovery in overall nonresidential construction spending volumes may hinge on whether construction materials prices remain relatively stable in the coming months."

The glass and glazing industry continues to hurt in the face of volatile prices and unstable economy. Trainor Glass Co. of Farmers Branch, Texas, folded last month and filed for bankruptcy March 9, and ASI Ltd. of Whitestown, Ind., suspended operations last December.

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