Photo: PixabayThe prices of construction materials have been rising since the beginning of the Ukrainian crisis, so the builders announce that they will ask for help from the state because they cannot perform the contracted works at the prices they agreed on. The construction industry in Serbia is preparing a letter to the Chamber of Commerce of Serbia (PKS) for help, because due to the astronomical increase in the price of construction materials, it is quite difficult to do business.
"We are preparing a request for help because the prices of construction materials are rising every day and the construction sector is on its knees, the old glory is behind us," several representatives of companies from that sector told Beta.
Ivana Vuletić, secretary of the Association for the Construction Industry of PKS, says for "Politika" that the market is recording a constant increase in the prices of certain materials, primarily steel products and fittings. There is a noticeable increase in the prices of construction chemicals, bitumen and bitumen emulsions, brick products, timber… Of course, the increase in energy prices is inevitable.
"From the conversations with domestic producers of construction materials, we received information that they currently have no problems with production and that they are working without problems, considering that they have several months of stocks of raw materials," Vuletić states.
According to her assessment, the duration of supply instability and the price of construction materials can hardly be estimated. PKS is ready to host a meeting of construction contractors with representatives of the competent ministry in April.
"The goal of this initiative is to overcome the consequences of the current instability of the construction material market, as well as to identify mechanisms for" price actualization ", Vuletic emphasizes. He states that the disturbances of the prices of materials, ie metals on the world stock exchanges have been noticeable since January 2021. Since then, the prices have been constantly changing with smaller or larger jumps.
"The disturbance in the prices of construction materials and raw materials on the global market was caused by the corona virus pandemic, but construction companies managed to overcome the situation with the help of state decisions and economic measures to mitigate the negative effects of covid on the economy," she added.
It should be reminded that the representatives of several domestic construction companies recently told "Politika" that due to the increase in the price of materials and inflation, some contracts for state projects on which they are engaged as contractors will have to be revised. They were signed with fixed prices, and in the meantime everything has become more expensive and domestic construction companies are not able to respect such agreements, but they are also planning future works.
The Ministry of Construction, Transport and Infrastructure confirms that the Ukrainian crisis threatens supply chains, especially construction materials, which affects prices on the global market.
"As in all crises, such as the outbreak of the Kovid pandemic 19, the Serbian government is closely monitoring developments and adjusting its decisions and recommendations to the current situation, to maintain stability and growth of the national economy and to continue the direct investment cycle unabated," the ministry said.
Asked whether some capital projects will be postponed, they answered that the Government of Serbia plans to approach all projects of national importance (including the renewal and modernization of transport and communal infrastructure) to ensure their stable financing and implementation.
The conflict in Ukraine has led to a global disruption of the market for chemicals necessary for the production of cement, primarily iron sulfate and urea solutions. According to PKS data, there are stocks in cement plants in Serbia in six months.
Miroslav Gligorijević, general manager of "Titan Cementare Kosjerić", says that the conflict in Ukraine has led to disruptions in the supply of many raw materials, and that, among other things, refers to the mentioned chemicals.
"We are looking for ways to overcome these disruptions and ensure continuity of production and security of supply for our customers. For now, we are succeeding and we will do everything to keep it that way ", states Gligorijević.
Source: politika.rs
