The prices of various building materials in the Middle East have risen by as much as 15 per cent in April 2009 as compared to the first quarter, with the price of steel witnessing the steepest hike from $430 to $500 per tonne, highlights Dubai-based Danube Building Materials.
The company says it indicates “a major correction phase” and “reshaping” of the Middle East market
It said there was increased buying activity within the building materials sector in April.
“The price hike, which is expected to encourage a more upbeat trade atmosphere in the market, is the result of the increase in building material imports following a slowdown in regional orders from October 2008 to February 2009 due to overstocking,” the company observed.
“According to the latest price indexes maintained by Danube, products whose prices jumped since April include medium-density fibreboards (MDFs), which wholesaled in early May at $220 per cu m from $200 in March; and white wood, which rose by 10 per cent to $210 per cu m from $190. In addition, freight costs have also increased from $300 to $650 for a 20-ft container compared to March, while a 40-ft container now costs $800 from $550 previously.
Healthier market expected
“The current correction in the real estate and property sectors is driving the shift in the prices of construction materials, which will eventually lead to a healthier market with more stable growth opportunities in the future,” said Rizwan Sajan, chairman, Danube Building Materials.
Danube’s price index also revealed that average rates for the most basic building materials are as follows: steel props at Dh45 ($12.2) per piece, cement Dh16 per bag, clear float glass (6 mm) Dh23 per sq m, and aluminum profiles Dh19 per kg. A survey of the prices of imported wood products has also reflected a dip, with scaffolding planks sold at an average of Dh55 per piece, West Malaysia Red Meranti Dh2,750 per tonne, European Whitewood Dh925 per cu m, Russian Beech wood Dh2,750 per cu m and Kingplus Film Faced plywood Dh125 per sheet.
