Building materials prices in Saudi Arabia witnessed remarkable changes during the month of August, as cement prices rose slightly, while concrete prices of all types declined. These changes came according to the Bulletin of Average Prices of Goods and Services issued by the General Authority for Statistics, which provides a comprehensive picture of the movement of prices in the construction sector during the month.
Rising cement prices
<The bulletin showed that black cement prices (50 kg) increased by 0.4% month-on-month, reaching 15.86 riyals per bag. This increase comes in light of the increased demand for black cement, which is mainly used in construction, reflecting the ongoing growth in the construction sector in the Kingdom.The price of black cement (50 kg) increased by 0.4% month-on-month, reaching SR15.86 per bag. <The price of white cement recorded a slight increase of 0.03% to reach SR38.05 per bag during August. White cement is mostly used in finishes and decorations, making its price increase limited compared to black cement.
White cement is mostly used in finishes and decorations, making its price increase limited compared to black cement.
Concrete prices fell
In contrast, the data showed a clear decline in concrete prices during the month. The price of concrete (350K resistance) decreased by 1.5% to reach 215.87 riyals per cubic meter. The price of concrete (250K resistant) decreased by 1.3%, recording 197.39 riyals per cubic meter.
The price of concrete (250K resistant) decreased by 1.3%, recording 197.39 riyals per cubic meter. The price of ordinary concrete also recorded a decrease in its prices, as the price of concrete (ordinary 350K) decreased by 1.2% to reach 206.32 riyals per cubic meter, while the price of concrete (ordinary 250K) decreased by 1.3% to reach 187.98 riyals per cubic meter.
The price of concrete (ordinary 250K) decreased by 1.3% to reach 187.98 riyals per cubic meter.
Gypsum and sand prices
In addition to the changes in cement and concrete prices, national gypsum prices rose by 1.2% to 16.78 riyals per bag. Gypsum is widely used in finishing and interior decoration works, and is considered an essential part of construction processes.
<The price of white sand rose by 0.03% to 68.2 riyals per cubic meter, reflecting relative stability in this sector. In contrast, the price of mixed sand (sand and gravel) decreased by 2.7% to reach SR48.35 per cubic meter, and red sand recorded a decrease of 0.8% to reach SR31.65 per cubic meter. Sand is used in many different construction applications, from foundations to finishes.
Changes in block prices
Black block prices declined slightly during August. The price of 15-centimeter black block decreased by 0.2% to 1703.27 riyals (1000 grains). The price of 20-centimeter black block decreased by 0.4% to 1749.28 riyals.
The price of 20-centimeter black block decreased by 0.4% to 1749.28 riyals.
Black block is one of the basic materials in construction, as it is widely used in the construction of internal and external walls, and these price decreases come amid a remarkable improvement in production and distribution processes, in addition to the decline in transportation costs and raw materials.
Price analysis in the building materials market
Experts in the construction industry suggest that the decline in concrete prices could be the result of improved supply chains and lower costs for raw materials used in the manufacture of concrete, as well as lower demand in some large construction projects during the month. This decrease reflects the trends in the construction market, which is witnessing continuous changes due to multiple economic factors, including global price fluctuations and urban development.
Despite the decline in concrete prices.
Despite the decline in concrete prices, the rise in cement prices reflects the continued demand for this vital product. Observers believe that the increase in cement prices may be related to the increase in production costs, such as energy and raw materials, as well as the increase in infrastructure projects and residential construction in various regions of the Kingdom.
Observers believe that the increase in cement prices may be related to the increase in production costs, such as energy and raw materials.
Future outlook for building materials prices
<Building materials prices are expected to continue to fluctuate during the coming period, amid global market movements and local changes in demand for building materials. Some analysts believe that the market may see a stabilization in concrete and cement prices in the coming months as economic conditions improve and shipping and transportation costs decline.Some analysts believe that the market may see a stabilization in concrete and cement prices in the coming months as economic conditions improve. <Minor changes in block, gypsum and sand prices are expected to continue, depending on local demand and optimization of supply chains. Major infrastructure projects in the Kingdom, which are part of Vision 2030, will continue to be a key factor in stabilizing demand for construction materials.
The changes in Saudi Arabia's building materials prices during August indicate a clear divergence between different products, with a rise in cement prices and a decline in concrete. The market remains subject to many influential factors, both locally and globally, which will determine the price trends in the coming period.
The market remains subject to many influential factors, both locally and globally, which will determine the price trends in the coming period.
