Construction Materials Prices Continued to Rise in October

CONSTRUCTION MATERIALS prices have now risen by almost a quarter in the past 12 months, according to the latest report from the Department of Business, Energy and Industrial Strategy (BEIS).

The BEIS material price index for all work rose by 24.5% in October 2021 compared to October 2020.

The largest component of the rise was in the Repair & Maintenance category, while other new work and new housing followed closely behind.

Across construction materials, fabricated structural steel saw the biggest increase in price of 70.6% during the year to October 2021, while imported sawn or planed wood closely followed with a 69.6% rise and concrete reinforcing bars rose by 60.5%. The only price to fall was the cost of screws which fell during the year to October 2021 by -5%.

Cement and Clinker

The report on other components shows that production of cement and clinker both fell considerably, with the latest data for 2020 giving a 11.4% reduction.

Meanwhile quarterly sales of sand and gravel decreased by 3.7% in Q3 2021 compared to Q2 2021, following an increase of 1.4% in Q2 2021. Comparing Q3 2021 to Q1 2020 (before the start of national restrictions due to the Covid-19 pandemic), sales have decreased by 4.8%.

Sales have risen, however, of ready-mixed concrete which show an increase of 4.7% in Q2 2021 compared to the previous quarter. This followed a 2.8% increase in Quarter 1 2021.

Bricks and Blocks

Concerns about demand for bricks continuing to grow are added to by the data showing an 8.0% increase in brick deliveries in October 2021 on the year, up from the 6.4% increase in September 2021on the year. The month-on-month change shows a 2.0% increase in October 2021.

Likewise, there was a 5.9% increase in concrete block deliveries in October 2021 compared to October in the previous year, although down on the 8.4% increase in September 2021.

International Trade

Imports of construction materials increased by £532 million in Q3 2021 compared to the previous quarter, an increase of 10.7%.

Exports of construction materials decreased by £35 million in Q3 2021 compared to the previous quarter, a decrease of 1.9%.

As a result, between Q2 2021 and Q3 2021, the quarterly trade deficit widened by£567 million to £3,687 million, an increase of 18.2%. As of Quarter 3 2021, the trade deficit is £3,687 million, which is 67% of the value of imports.

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