Saturday, December 18, 2010

EconomicsUSA: Construction; Cost of materials in usa rises due to Building Boom in other countries

I found this nooz item in the email nerwsletter of the Associatied General Contractors: of America [Dec17,2k10]  -- Building boom in other countries pushes up materials cost

 The cost of construction materials has increased by 4.8% over the past year and 0.5% in November alone, thanks to burgeoning demand in China and India, according to the Associated General Contractors of America. Prices for copper and brass have risen by 16%; diesel fuel has increased by 18%; and aluminum has grown by 14%. Such sharp cost increases can run construction companies out of business, AGC warns. Los Angeles Times / Money and Company blog (12/16)  
The market is hi-ly sensitive also to precious metals of the newer kind from China, under a new designation, but very important to importers into Ameroica from China of these precious materials [not comparable to 'blood diamonds' as far as i know], China where there's a relative abundance of the necessary mining operations.  For a brief period, China barred exports of these commodities to Anerica 

Telegraph [Aug1,2k10] 'hot political summer as China throttles rare metal supply and claims South China Sea', by Ambrose Evans-Pritchard.

-- EconoMix

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