Prices of construction materials falling amid reduced demand

Business Forum

10 June, 2024 at 2:39 PM

The prices of construction materials, which have been stagnant until now, are expected to fall sharply this year on the back of reduced demand. The biggest price drops are recorded for brick (-6%), followed by polystyrene and plasterboard (-5%), reinforced concrete (-4%) and roofs (-3%).

The construction materials whose prices are increasing, however, are Oriented Strand Boards (OSB), with an advance of 6%, and sandwich panels, whose price is rising by 4%.

"In contrast to 2023, when construction material manufacturers engaged in active promotional campaigns, the situation has changed considerably. Currently, it is becoming more and more difficult for them to maintain prices at a competitive level without compromising the quality of the products," said Cosmin Răileanu, founder of Vindem-ieftin.ro.

If last year, the companies in the market offered discounts of up to 30% for the construction materials sold, at the beginning of the current year the prices have increased significantly. The construction materials whose prices increased the most at the beginning of this year were brick (+17%), reinforced concrete (+10-15%), sandwich panels (+10%), polystyrene (+5-8 %) and cement (+3-5%).

In this market context, profile companies try to optimize their costs and negotiate cash payment for materials, precisely to obtain a better cost and maintain positive margins. It also increases the demand for premium products for energy efficiency, so that constructions meet nZEB (nearly Zero Energy Building) norms. Also on an upward trend is the number of B2B projects in the entrepreneurial environment for new business lines, production and storage spaces, etc.

"Competitiveness in the market has become a real balancing exercise. However, major manufacturers assure that there are solutions to deal with this new reality. The building materials market is dynamic, and this involves many challenges. Suppliers are frequently looking for solutions to offer construction materials without compromising on quality, especially in the context of high inflation worldwide," added Cosmin Răileanu.

Vindem-ieftin.ro is the first market network in the field of construction materials in Romania that operates on consultative sales, directly from the factory, to any type of construction site. The company recorded a turnover of €15 million at the end of 2022 and expects accelerated growth in the coming years.