Building materials in market of Baku increase by almost 8%

Azerbaijan , Baku, Feb. 23 / Trend U. Ismayilova /

In January, prices on the Baku building materials market increased by7.68 percent compared to December 2010, the NGO Property Market Participants reported.

Prices rose by 8 percent compared to the previous quarter, and 32 percent - the same period last year.

Market share of domestic materials in the total portfolio value exceeded the share of imported goods in the 3.72-fold in January.

Monitoring was conducted on 38 items and 88 types of building materials.

Studies show that the processes in the global economy (the rise in prices on oil markets and other factors) also affected the building materials market in Azerbaijan. Based on the monitoring results, the relative activation of the metals market in November 2010 led to a sharp rise in prices for iron materials. Market participants attributed the rise in prices for iron materials mainly to processes in Russia and Ukraine (rise in energy prices).

Higher prices at the expense of domestic production were mainly due to rise in prices for rebar, which constitutes the main share of the iron materials market. The price increased on this type of material by 17.5 percent. According to the Baku Steel Company (the largest steel producer in Azerbaijan), rising prices for rebar occurred mainly due to the price hike of chemical compositions (electrodes, manganese, lime and others) that are imported from Russia.

In January, the market observed a reduction in price of construction wood by 10 percent per cubic meter to $225.

The summary table shows the construction material prices, which declined (in percentage):

The summary table shows prices increase on the construction materials (in percentage):

Prices for other construction materials remained stable.