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Statistics Centre - Abu Dhabi releases report on building material prices |
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Statistics Centre - Abu Dhabi (SCAD), is working towards creating an index for the prices of building materials (construction sector), comparable to the consumer price index (CPI) published by the SCAD on a monthly basis and put within the access of all segments of society. The present report is the first in 2010, and follows a number of similar reports published in 2009. It reflects overall movements in the average prices of the main construction materials in 2009, and thus reviews the key indicators of the construction industry in the Emirate of Abu Dhabi. The report aims to acquaint data users and the general public with the price changes that occurred in 2009 as compared to 2008. It also seeks to ensure that project owners are fully aware about the price trends of building materials over the last past two years. As indicated above, the report tracks price changes the main categories of construction materials, namely, cement, aggregate and sand, wood, steel, concrete and concrete blocks. It is true that there are other categories of building materials but their relative importance is smaller that the main groups discussed here. The report will enable project owners to gain access to market prices and help them make relevant estimates. It can also serve as a source of information for studies dealing with the consequences of the financial crisis and its obvious impact on the building materials market. Price changes in 2009 compared to 2008. The prices of building materials have fluctuated a great deal as of late. Over the past few months, for instance, there was a drop in the prices of several items as a result of the economic crisis that swept the world in the fourth quarter of 2008. There was a decline of 6.6% in the cement group against its level in the year 2008, during which cement price exhibited a 19.8% rise compared to 2007. The cement group had exhibited a strong upward trend, reaching a peak in Q3 2008, but declined subsequently, reflecting the onset of the financial crisis. Cement prices had since been retreating until Q4 2009. The report shows there was surge of 6.7% in the average price of aggregate and sand in 2009 compared to 2008. To draw a comparison, the average price grew 43.6% in 2008 versus 2007. The rise observed in 2009 was driven by the sharp increase in the prices of all types and sizes of aggregate, from AED 34.6% in 2007 to AED 68.8 in 2009, which marks an increase of 98.9%. This continued upward movement in the price of aggregate and sand in the Emirate of Abu Dhabi unaffected by the economic crisis is due to the large scale road development projects currently under way all over the emirate The average price of concrete declined by 13.5% in 2009 compared to 2008, following a steep rise of 61.4% in the price of this item in 2008 above its average price for 2007. Likewise, the price of angled steel dropped 46.7% below the average for 2008, due to the fall in the price per ton of angled steel from Turkey, Ukraine and Korea by 52.4%, 46.4% and 47.9%. Beam steel was no exception, its average price having retreated 34.4, owing to the decline in the price of large beam steel from Japan by 38.8%, while Ukrainian and Korean beam steel went down by 37.6 and 26.9%, respectively. RBC mesh prices plunged 38.6%, while binding wire was the item that showed the slightest decrease (12%) within the steel group. |
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