BUILDING MATERIALS INCREASE IN PRICES

    BAKU/08.09.10/TURAN: The August monitoring of the building material market proved that several of these materials became more expensive against the previous month. The surplus was +12% for wood, +5.5% for wooden sheets, +5.4% for nails, +0.5% for waterproof roof covering, and +2% for zinc coating. Recall that the previous month"s surplus was +1.3% for roofing slate, +2.2% for glass, and +1.4% for wooden sheets. Several materials became cheaper in August: -1.7% for steel framework, -1.2% for iron sheets, -1.3% for angle bars, -4.9% for sawing stone, and -6.2% for foam plastic. The prices of other building materials did not change. The customers were particularly displeased with the expensiveness of wood and wooden sheets. The importers explained this with the increasing customs expenditures and the problems that appeared in cutting woods during the season. The Property Market Participants NGO calculated that the prices were at -3.5% in July against the previous quarter and at +15.9% against January 2010. They were at +20.2% against July 2009. The purchasing capacity did not however increase, and kept very low, while the market kept passive.
     Experts do not explain the market changes with normal ratios between supply and demand. They explain this with the existing monopolization and illegality in Azerbaijan. In thgeir opinion, the market will keep passive, but the prices will fluctuate on the coming days.