We are expecting higher prices of raw materials, which will also affect the construction sector

Based on a survey of business people’s expectations in 12 European markets, the international consulting company Horvath estimates that in the first months of 2022, one can expect a record increase in the prices of raw materials and materials such as wood, steel and plastic. This increase is a consequence of the shortage on world markets caused by the increase in demand due to the spread of new strains of coronavirus and the closure resulting from the pandemic.

A large increase in the price of wood is expected

Big increase in wood prices is expected (Photo: Pixabay)

– The price increases are a consequence of empty warehouses, limited supply and continuously high demand, which will affect the market in the medium term. Sudden increases in commodity prices await us even after the pandemic, as extreme weather conditions, infrastructure disruptions, financial market developments, trade conflicts and logistical problems are increasingly upsetting the transport balance. Due to the high degree of globalization of the economy, the consequences of this development are immediate and very serious – said Horvat expert Marija Boldor.

He notes that European businessmen in the coming months they expect wood to become the most expensive by as much as 33%, and the biggest influence on this trend are the markets of North America and China, where that raw material is a third more expensive than in Europe.

All this spills over to the Serbian market, where construction, facade and insulation works cost significantly more than before. It is similar with the prices of furniture, household appliances, cars, real estate and services of craftsmen who use plastic, wood and steel.

Boldor noted that it is expected during 2022 further increase in the price of steel, which during the first half of 2021 has already risen by 60 percent, as well as plastic, which recorded record high prices last year.

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

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