Building Products: April PPI Data: Asphalt Prices Sharply Higher; Shingle Price Realization Begins

Research evidence excerpt

Building Products: April PPI Data: Asphalt Prices Sharply Higher; Shingle Price Realization Begins

Deutsche Bank

Research

North America Industry Date

Building Products Building Products 14 May 2026

April PPI Data: Asphalt Prices Sharply Higher;

Collin Verron Shingle Price Realization Begins

Research Analyst

+1-212-250-5181

April Producer Price Index data was released this morning. Roofing shingle prices

have begun to move higher, increasing 0.3% MoM in April. However, with the

asphalt PPI up 41% MoM, we believe the price index will require more significant

improvements from the April and June manufacturer price increases for OC to

effectively offset raw material headwinds. Insulation prices were relatively flat

YoY, in line with OC’s commentary for 2Q.

Roofing price increases begin to take hold. Shingle prices increased 0.3% MoM

and 0.7% YoY in April. OC and its competitors were implementing a 5-8% price

increase throughout the month, so we would expect to see an acceleration in the

May data. However, OC still expects 2Q shingle prices to be lower YoY given price

erosion throughout 2025 and 1Q26. The manufacturers have announced a

second round of pricing (5-10%) effective mostly in June to combat inflation.

Large distributors have announced a second price increase of their own.

Asphalt prices skyrocket. The asphalt PPI increased an eye-popping 41% MoM,

the highest sequential move in the data set that began in 2002. On a YoY basis,

asphalt prices were up 18%. This is not surprising given the move in oil, but it is

notable, nonetheless. OC expects ~$30 million of incremental inflation per

quarter in its roofing segment, including asphalt, from the Iran conflict. OC

reported 1Q results in early May, so the magnitude of the asphalt cost increase in