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Business warns of a 10% rise in prices for building materials in 2022

Businesses have warned of rising prices for finishing building materials and wood-based panels in 2021 to 10% in 2022. Izvestia writes about it.

The reason for the rise in prices is the increase from 5% to almost 20% of the import duty on a component for the production of finishing building materials - melamine. The increase in duty occurred after a complaint from the Russian company Nevinnomyssky Azot about dumping by Chinese suppliers.

The Association of Furniture and Wood Processing Enterprises of Russia (AMDPR) decided to contact the FAS to clarify the situation in order to avoid price increases. The department said that they would consider the appeal in the prescribed manner.

According to experts, Nevinnomyssky Azot produces low-pressure melamine, and in order to meet international quality standards, high-pressure melamine is needed to produce wood-based panels. Therefore, most often suitable raw materials are bought in China.

Market participants considered that with an increase in the duty on Chinese melamine, it would be difficult for manufacturers to keep prices for their products even at the level of 2021. Thus, prices for such finishing materials have already increased by 36-42%, and furniture has risen in price by 11%.

The experts proposed to develop the resource base of Russia in order to avoid dependence on the pricing policy in the world markets. It is also worth increasing the supply of housing, and for this it is necessary to open new production of building materials to contain their cost.

On January 17, Russian President Vladimir Putin instructed the Federal Antimonopoly Service to regularly monitor the justification for raising prices for building materials. The head of state gave the corresponding instruction following the results of the council for strategic development and national projects.

Business warns of a 10% rise in prices for building materials in 2022