Rise in price of construction raw materials up to 100 percent

Prices of OSB boards, which are installed as a construction product under roofs, have doubled in just three months. Styrofoam is how for portal N1 states Tanja Aprcović, head of the warehouse Kopaonik in Belgrade, rose by about 80 percent. Unlike last year, when, as he states, the prices of construction raw materials have stagnated or even gone down, in the last three months of this year, there have been significant increases. Goran Rodić from Chambers of Commerce of the construction industry he says that the built square will definitely become more expensive for the citizens who are building a house for themselves. With apartments for sale, the price, he points out, is dictated by the market.

Illustration (Photo: Pixabay.com)

Who last year, when the whole world “tackled” the pandemic, decided not to delay the planned construction work – whether it is citizens who are renovating or building a house and garden or large investors who are building multi-storey buildings – saved significant funds .

The building material is, namely, significantly more expensive, for some products the price has even doubled, and at the warehouses, when asked what has become more expensive, they answer with the statement: “It is easier for us to list what is not”.

Brick products, such as tiles, cement and lime, also became slightly more expensive. Stone wool has not become more expensive, but we expect… Everything else is recording an increase in price. Most are, by about one hundred percent, OSB boards have become more expensive in the last three months. Then styrofoam, which was already 60 to 80 percent more expensive in February and March compared to January this year – says Tanja Aprcović, head of the warehouse Kopaonik.

All metal products are also more expensive.

– Depending on the item, they have risen in price from 60 to 90 percent, or on average about 70, 80 percent. These are all types of concrete iron, reinforcing mesh, wire … – it is added.

Wood products have also become more expensive.

Wood products are 50 percent more expensive and higher. These are planks, beams, laths, fossils… Otherwise, there is a great demand for wood products and there is a shortage of timber. We are importers and in January we imported 25 trucks of OSB boards from Hungary, and in May – only four, five times less than needed – the interlocutor states.

The price of raw materials coming from China has also increased, which, as he states, is justified by the increase in the price of container transport.

– All last year, prices have been stagnant, they have even gone down. Styrofoam has never been cheaper than in 2020 since I have been working for 37 years. And now this price is 80 percent higher – more expensive than ever – says Aprcović.

The price of iron, he says, started to jump in January. However, as he expects – this situation will not last long. With such prices, it is more difficult for construction investors to do the calculation of sales prices.

From the warehouse angle, the business year 2020 has passed – great.

– Last year was the best since 2008. We worked all the time, the demand for construction raw materials was huge. We mainly supplied the construction of large facilities. Now the demand is lower than last year, and the prices are higher – the interlocutor concludes.

According to the International Monetary Fund (commodity market price indices), metal prices on the world market have risen significantly in a year. Thus, iron ore in April 2021 was 112.8 percent more expensive than in April 2020 – more than double. Copper is less than 84 percent more expensive, and aluminum by 59 percent…

– With individual construction – that means if you build a house for yourself, the square will surely become more expensive. Those apartments that are for sale, the price is dictated by the market – the seller will see if he will have to raise the price, but he will have to pay the contractor increased costs – said Goran Rodić, president Chambers of Commerce of the Construction Industry of Serbia.

Source: Gradjevinarstvo.rs – VESTI by www.gradjevinarstvo.rs.

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