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Why are building materials prices breaking records? What will be more expensive?

Why are building materials prices breaking records?  What will be more expensive?

Building material prices are going crazy on the Polish market. Prices for OSB panels and thermal insulation materials reach multiple increases. However, even higher records will be set in the case of construction timber prices. Will these high price trends last for a long time?

The year 2021 began with further increases in the price of building materials, which affected cost increases related to the implementation of construction investments.

Statistically speaking, the prices of building materials for this year on the Polish market increased by 7-8% over last year. However, the price dynamics in the case of OSB panels, thermal insulation or masonry timber reach an unprecedented double-digit dynamics this year. Why mad prices of building materials are still rising?

Wouldn’t only OSB panels and thermal insulation become more expensive?

Experts confirm that the current price increases for building materials are extraordinary as we deal with continuing price trends from the past 2-3 years. As experts point out, the costs of building a typical single-family home this year have increased by about 20-25% compared to 2018.

And this is just the beginning of the rise in prices of building materials on the Polish market.

Ll. Variety PSB 4 PM-2021/4 PM

IV 2021 / IV

1 OSB boards 20.7% 32.4%
2 Dry building 12.1% 7,9%
3 thermal insulation 10.0% 7,9%
4 Lighting and electricity 5.8% 9,6%
5 Cement and lime 5,4% 3,6%
6 Installations and heating 5,4% 7,1%
7 Garden hobby 5,3% 6,5%
8 Roofs and gutters 4,7% 5,0%
9 Tools 3,8% 4,4%

Building materials price increases for select Polskie Składy Budowlane in April 2021 Source: PSB

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As you can see, not only the prices for OSB panels and thermal insulation are distinguished by two-digit growth dynamics, we can also talk about significant price increases for drywall and products from the lighting and electrical assortment. How does a PSB expert explain these startling price increases?

The market for raw materials and semi-finished products for the production of building materials is becoming more difficult

It became more and more unpredictable and difficult to provide.

Unfortunately, in many cases this necessitates further price changes

And the problems of periodic availability of building materials, and what a

Hence the deadline for fulfilling the order has been extended – confirms Sławomir Ziółek, Commercial Director of PSB Handel Group. – to grow from them

Recent prices Polystyrene (about 25% – 4 months 2021 to 4 months)

2020), OSB slabs (about 20%), dry construction (about 12%),

The prices of aluminum products are also risingThat results from the difficulty

Situation in Global Aluminum Exchanges – Sławomir Ziółek of PSB Handel sums up.

PSB Handle expert believes that the reasons for this dynamic increase in prices are the unavailability of these raw materials completely, which may lead to an extension of the order execution time or temporary and partial defects in a certain assortment, such as ladders, work platforms or construction scaffolds.

– Material prices are also on the rise due to rising transportation, energy and labor costs – Sławomir Ziółek sums up z PSB Trade.

This is not the end of the price hike. The prices for construction wood are the most insane. Where do these price changes come from?

The beginning of the boom in the Polish construction industry

Prices for construction timber are emerging not only in Poland

In the United States, sawn timber prices have increased nearly 300% in the past 12 months. And since the start of this year, we can talk about price growth dynamics at around 70%, of course in the US. States. All because of the massive and unmet demand for sawn timber due to a construction boom in the United States.

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It is not the best in Poland either. Polish prices Wood By 30-50%, which is better reflected in the price increase for OSB panels at the 30% level in Polskie Składy Budowlane.

The shortage of construction timber in the United States has led to the launch of direct exports from Polish sawmills, which is what the Polish market and the domestic construction industry are feeling.

Many developers have had to put off investments due to a shortage of structural wood used in building single-family homes. Of course, this leads to an increase in the price of construction timber on the Polish market.

Pending orders and a shortage of these building materials on the Polish market pushed sawn timber prices into exorbitant sums.

For several months now, the entire Polish construction, renovation and development industry has already felt the effects of the rapidly increasing cost of building timber. This has an effect on home construction costs and the implementation of other construction investments.

Although the price was corrected drawa In the US market (prices of this raw material begin to fall on the Nasdaq in the US), according to many experts, the demand for construction timber will also remain in Poland for a long time, throughout 2021.

Small and large contracting companies have already started many investments, and these building materials are still missing from distributors on the Polish market.

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