Report on building materials price movements during October 2009

The bulletin therefore represents the primary source of information for the purposes of making decisions, estimating costs of construction and establishment, preparing feasibility studies and research related to the construction sector. It also represents an important means of updating the business community and the general public on the prices of basic construction materials to limit the possibility of price manipulation by some traders.

To maximize the usefulness of its publications, SCAD provides public access on its website to Arabic and English versions of all the bulletins, periodicals and reports issued by the center.

According to the Building Materials bulletin, the prices of construction materials showed a mixed trend during the last month.

The average prices of six out of ten basic items have shown a decline in their average prices. These include cement which slipped by 0.32% compared to its September price, reflecting the drop in the average prices of Itihad sulphate resistant cement from Dhs330 to 321.25 per ton and Itihad Portland cement from Dhs320 to Dhs311.25 during the comparison period.

In addition, the average price of concrete decreased by 10.99% compared to last September, with the price of standard UAE ready mix concrete, retreating from Dhs352.5 in September to Dhs315 in October and that of UAE sulphate resistant ready-mix concrete from Dhs363.75 to Dhs322.5 over the same period.

Likewise, the average steel price of construction steel edged down by 1.86% in October compared with the previous month as result of lower prices for most types of steel products.

As for the wood, the average price nudged down 1.02% in October compared with September 2009. The decline was due to reduced average price per cubic meter of Chile white timber by 10.73% from Dhs1203 to Dhs1075, and a drop in the average price of white Indonesian plywood from Dhs71.58 to Dhs64.24, by 10.26% per 4x8x12 mm sheet and 7.78% per 4x8x18 mm sheet. Meanwhile the average prices of small and large Malaysian Keruing redwood shot up 15.38% and 9.27 %, respectively, compared to their September levels.

Furthermore, the average prices of tiles and marble declined by 5.79% in the month of October below their average levels last September. This was due to the decline in the prices of most types of tiles and marble, especially marble tiles, which slipped 9.75%, UAE terrazzo tiles which fell by 8.18%, and walls ceramic tiles, which retreated 11.88%.

As to he average prices of sanitary ware, there was a 2.62% drop in October from the average recorded last September. The decline was brought about by the lower prices of bathroom sets (without accessories), which fell by 5.68%. On the other hand bathroom sets with accessories and stainless steel sinks with mixers remained unchanged compared to their average prices last month.

However, the average prices of four basic groups have seen significant rises during the month of October. These include waterproofing materials, which climbed 7.69% on average, due to a rise of 9% to 13% in the average prices per ton of bitumen 60/70, and the average price per steel drum of SS, MS and RC bitumen.

The month of October also saw the average prices of glass going up 13.05% against the average reported last September, the average price of 4 mm and 6 mm untinted glass having leapt 16.67% and 30.95%, respectively, while that of 4 mm and 6 mm mirrored glass climbed by 13.04% and 4.58%, respectively. Meanwhile the average price of tinted glass remained stable in October, maintaining their level that had prevailed in the preceding month.

There has also been a significant rise during last October in the average prices of PVC water and sewage pipes by 12.07% versus their prices in September. In this regard, the average price of 3 inch x 6m UK made PVC pipe advanced by 18.57%, posting the highest percentage rise within this category, followed by 2 inch x 6m UK made PVC pipe , which increased by 17.18%, while the lowest rise was that of 1.5 inch x 6m UK made PVC pipe, which went up by 3.59%.

Likewise, the prices of electrical wiring cables have also shown an upward trend during October, climbing 3.79% above their average levels back in September, with the overage price of electrical wires for small-sized buildings growing by 5.69%, while that of wiring cables used for high-rise buildings (residential towers) surged 5.73% compared to last September. In contrast, the average price of wiring cables used smaller units (apartments) dropped 4.35% below the average recorded in the previous month.

A quick glance at the trends of building materials prices during the last month of October shows that the prices of some basic building materials, namely, steel, cement, concrete, wood, marble and tiles and sanitary ware have all declined to varying extents, compared to their levels in September.

In contrast, the prices of other materials surged considerably, especially glass, water and sewage pipes, waterproofing materials and electrical wiring cables. However, the prices a wide variety of other building materials remained perfectly stable during the period under review.

This variation in building materials price trends in Abu Dhabi can be attributed to fluctuations in the prices of these materials in the international market, which continues to be impacted by the repercussions of the financial crisis. In addition, building materials price in the emirate are also influenced by a set of other factors related to the forces of supply and demand in the domestic market.