Wood prices in the Middle East remain stable from July to August
Wood prices continue to remain stable since rates recorded in July until the second week of August, a significant development that follows 18 months of continuously declining prices, according to Danube. As the market witnesses heightened buying activity within the building materials sector, Danube Building Materials, the leader in construction, building materials and shop fitting industries, has announced its aims to address the increased demand for wood, especially with many regional developments approaching their completion.
According to statistics released by Danube, wood prices began to stabilize in the first week of July, and are expected to increase further in the coming months. In addition, prices of other building materials continue to register growth, including steel props, which rose to AED 45 per piece from AED 42; scaffolding planks, which are currently being sold at AED 59 per piece from AED 58; and Red Meranti from West Malaysia, which has increased to AED 2,750 per ton from AED 2,700. The only product, which has seen a dip in price versus the rate in May is cement, which now wholesales at AED 15 per bag from AED 16.
“Prices of wood have dipped to its lowest in the first quarter this year, which is a tremendous development for developers who are nearing the completion of their projects and are gearing up for delivery this year,” said Rizwan Sajan, Chairman, Danube Building Materials. “With factors such as fluctuating supply of raw materials and the current correction in the real estate and property market, we anticipate the prices to increase further. Our goal is to leverage this shift by delivering top-quality products to major projects and developments across the region.”
In addition to wood, Danube also named other products, which have seen no variation in their retail prices, including Russian Beechwood, 6mm glass, aluminum profiles, film faced plywood (KINGPLUS), and medium density fibreboards (MDFs). European Whitewood has also seen an increase in prices within the same period, from AED 1,050 per cubic metre to AED 1,075.
“The continuous change in prices of building materials is indicative of an impending recovery phase for the construction and property development sectors, and we are expecting the results of this excellent new update in prices to further fuel activities within the region’s construction arena. We are committed to meeting the building material needs of all customers, which we continue to reiterate with our efforts to expand our operations across the region,” concluded Sajan.