The price of construction materials has been one of the main factors in the increase in housing prices this year, largely generated by the aftermath of COVID-19.
Taken from Listín Diario
SANTO DOMINGO.- Gray cement and other materials used in construction have registered new price increases this past week.
A 42-kilogram (kg) bag of gray cement costs between 5%, 10%, 12%, and up to 15% more than the previous one, depending on the distribution location. At the border, it costs around RD$500.
When asked about it, the president of the Dominican Association of Hardware Stores (Asodefe), Arturo Espinal, assured that not only cement has gone up in price, since it is an input for manufacturing blocks and that electrical and steel materials are also registering increases.
However, the Dominican Steel Association (Adoacero) says that the price of steel rods has not increased recently, as that was six months ago and that price remains the same.
He confirmed the increase in the price of cement, but to a lesser extent, and explained that it is sold cheaper in the Dominican Republic than in Mexico, Costa Rica, Panama, Colombia, and the United States. In the Dominican Republic, he added, a bag of cement costs less than US$10.
Hardware
store owners:
“We have seen a 15% increase, which we understand is a blow to the construction industry and to the desire of every family to own their own home,” Espinal told Listín Diario, after explaining that hardware store owners had not seen a price increase of that magnitude for such a basic construction necessity in many years.
He stated that the price of steel, especially rebar, also increased, but that increase was two weeks ago and had a smaller impact, of 3%.
Espinal stated that there have been increases in those two important categories, and the most worrying thing is that these increases will be reflected in many more products "by default", mainly in the four-inch, six-inch and eight-inch blocks.
The housing construction sector confirmed that the price of gray cement rose.
The production of gray cement uses petroleum coke, and this has had an impact, as has the increased cost of freight. Another product that, according to builders, has also risen in price is lumber.
The Direct Cost Index for Housing Construction (ICDV) shows sustained increases in inputs such as wood with 7.99%, in June of this year; steel 10.90%, miscellaneous electrical supplies 11.26%, electrical wires 13.34%, stones and marble 19.81%, ironwork 25.50%, and tools 48.33%.
In October of this year, the National Statistics Office (ONE) indicated that the ICDV rose 2.79 points that month, compared to the previous month, increasing from 196.82 to 199.62 points. According to the ONE report, almost all inputs increased.
According to a note on the ONE portal, the director of Economic Statistics of the ONE, Augusto de los Santos, indicated that the main increases were produced both by the materials group, with 2.09%, and by the wood subgroup with 8.20%.
The report also indicates that Maritza Pérez, head of the Department of Current Statistics, explained that during October 2021, the cost of tools decreased (-2.72%) and subcontracts (-0.28%), while the main increase was in materials (2.09%).
The largest increases were seen in wood (8.20%), followed by PVC pipes and fittings (6.72%) and paint (6.21%).
Largest increases
According to a note on the ONE website, the main increases were in the materials group, with 2.09%, as well as in the wood subgroup with 8.20%.
Statistics
During October 2021, the main increases were in wood (8.20%), followed by PVC pipes and parts (6.72%) and paint (6.21%).
The cost of tools decreased (-2.72%) and subcontracts (-0.28%).
