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Why have prices for building materials increased by 1.5-2 times in half a year? Understanding the reasons

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This construction season I have plans to purchase rebar and lumber. According to my strategy, I acquire everything before starting work. But this time the prices didn't just surprise - they just shocked. Everyone is already accustomed to the fact that prices grow by 10-15% annually. But not 50-100% ...

Prices for sawn timber increased from 9-10 thous. rubles / m3 up to 15 thousand rubles / m3. (50% growth in half a year). Metal prices have almost doubled. Last season, I purchased fittings at a price of $ 45,000. rub / t.

And this is the price when ordering from 10 tons. Source: https://krasnoyarsk.spk.ru/catalog/metalloprokat/sortovoy-prokat/armatura
And this is the price when ordering from 10 tons. Source: https://krasnoyarsk.spk.ru/catalog/metalloprokat/sortovoy-prokat/armatura
A source: https://www.brevno24.ru/price
A source: https://www.brevno24.ru/price
And this is the price when ordering from 10 tons. Source: https://krasnoyarsk.spk.ru/catalog/metalloprokat/sortovoy-prokat/armatura

These are the most demanded materials. Back in December 2020. a friend of mine who works in the furniture industry wrote that the price of fittings increased by 30%. Friends who sell accessories for stoves and fireplaces - also at the end of 2020. reported strong price increases.

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The paint company (which I work for) had to raise prices in April and there is still more price increases to come. In total, this will be an increase of at least 30%. And all because of the increase in prices by suppliers of chalk, micromarble, polymers.

In general, this year prices for all building materials will rise to varying degrees by tens of percent, or even double. What is the reason for this? Economists say economic chains have been disrupted during the restrictive quarantine measures. Costs have increased. Maybe. But what are the costs of steel mills that have skyrocketed for metal? They wrote that taxes have increased in this industry. Pre-mining tax increased by 3.5 times.

A source: https://www.rbc.ru/business/16/09/2020/5f61e0b39a79475c34696391
A source: https://www.rbc.ru/business/16/09/2020/5f61e0b39a79475c34696391

Those. there was a tax of 4.8% on the sale value of materials and raw materials, and became 16.8%. The government is handsome, as they say. A. Siluanov "genius" of economics. Plug budget holes at the expense of business, and ultimately at the expense of the population's wallets. But the management of metallurgical plants is also no better. It was possible to simply broadcast these costs (and gradually, not to shock the market). But why raise prices by tens of percent? I do not think that material traders have joined in speculation in this market and have also inflated prices in collusion. There is work for the FAS.

This is part of the problem. The other half is export. Wood and metals were exported abroad in trains and in millions of tons - and they are exported. Manufacturers do not want to sell their products to the domestic market for a penny, if everything can be sold abroad for foreign currency. And with such a ruble exchange rate, get rich. Those. this tendency has intensified - our producers are getting hooked on this more and more and they will soon be cared for in the domestic market.

The shortage of guest workers during the restrictions also added fuel to the fire. People from Central Asia cannot come to Russia to work (it has become expensive and restrictive measures). And our people do not work for a penny.

There is also such a version. That the real masters of our oligarchs use such economic methods to create real sanctions for Russia. That, the boards of directors (where there are foreigners) and the board of large enterprises decided so. All large factories are registered offshore. And they have leverage.

The head of government, at a speech in the State Duma, bluntly stated: the rise in prices is the greed of producers. I agree with him. Why raise selling prices by tens of percent if your tax has been raised by only 12%? But the Government also had to think about where everything would lead. You cannot raise the tax at the same time at times.

This is such a market economy. Nobody influences anything and everyone does what he wants. Where will this all lead? The prices for apartments will rise, it will be 1.5-2 times more expensive to build a house, and it will be impossible to plan costs. We'll have to buy everything after the fact. No prepayments and winter payments for freezing prices.

But there is a spoonful of honey for builders. Because the population cannot travel to different countries for recreation (and not everyone will go to Crimea and Sochi), they will build houses and summer cottages. Because no one knows how long the restrictive measures will last.

Who thinks about this situation with prices for building materials - write in the comments.

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