Price growth and pricing in the construction materials market

Russian production of building materials continued to grow in 2012, with growth rates ranging from 10 to 20%, depending on the specific material. The North-West region shows the highest indicators — for example, over the past three years, the volume of cement production increased from 2.6 million tons to 4 million tons per year. Annual growth in the North-West region is 14.5%, which is also higher than the national indicator. Despite this, the overall dynamics in 2013, according to experts, will be lower than in 2012.

The construction and finishing materials market is developing at the same pace as the housing construction market. In the near future, experts expect prices for basic materials to rise within the limits of inflation.

Pricing in the construction and finishing materials market depends on several factors, the main one being the direct sales market. At the moment, prices are growing within the limits of inflation, but it is quite possible that the rate of price growth will accelerate. At the moment, in many regions, supply exceeds demand, and many manufacturing enterprises are experiencing an acute shortage of orders. Manufacturers of plain concrete, precast concrete, window blocks, bricks, and dry mixes are particularly hard pressed.

The cost of production of construction and finishing materials is also constantly growing, as electricity and gas are becoming more expensive, which especially affects energy-intensive industries: for example, cement production. Another important component of the final price of construction and finishing materials is the cost of transportation, which is affected by rising fuel prices.

Speaking about the pricing of building materials, do not forget about the seasonality factor. As a rule, prices are stable in January-February, while in the warm season, when construction is in full swing, prices traditionally rise.