The production of building materials increased by 35%

In the dynamically developing field of construction and infrastructure, the growth in the construction materials sector continues, as evidenced by the latest statistics published by the State Statistics Committee. According to data for January-February 2024, the production of construction materials in Azerbaijan increased sharply, reaching 173.9 million manats, which is approximately 102.2 million US dollars at the current exchange rate. This figure represents a noticeable increase of 35.1% compared to the same period in 2023.

If we talk about specific sectors of the building materials industry, cement production showed outstanding results: production reached 546.7 thousand tons, which means a significant increase of 29.8%. Similarly, the production of precast reinforced concrete structures showed a noticeable surge, recording an increase of 50% to 6.3 thousand cubic meters. However, asphalt production decreased by 9.1 thousand tons, which is 37.7% less compared to the previous year.

Further analysis shows mixed indicators in various segments. The production of building bricks increased slightly, reaching 84.4 thousand cubic meters, an increase of 3.7%. On the other hand, the production of building glass showed steady growth: the volume of production increased to 1 million 760.4 thousand square meters, which reflects a significant increase of 30.3%.

However, there has been a decline in production in some sectors. The production of cement clinker decreased by 17%, amounting to 551 thousand tons, while the production of construction gypsum increased markedly by 23.1%, reaching 11.2 thousand tons. The production of finished concrete mix showed a noticeable increase, reaching 731.6 million tons, which means a significant increase of 59.7%. Conversely, the production of construction lime decreased significantly - by 56.7% to 3.9 thousand tons.

It is worth noting that these figures follow the high figures recorded in 2023, when the production of building materials in Azerbaijan increased to 1 billion 180.3 million manats, which means a noticeable increase of 31.8% compared to 2022.

Against the backdrop of Azerbaijan's thriving building materials sector, a detailed analysis reveals intriguing trends in price dynamics, especially in 2023. According to the Turan survey, prices for building materials showed moderate growth on average, recording an increase of 6.35%. However, this all-encompassing trend hides a mosaic of fluctuations, with some materials experiencing noticeable price spikes, while others remain relatively stable.

Among the materials, the prices of which have increased significantly, the profile of the reinforcement with a thickness of 8 mm, which has risen in price by 70%, stood out in particular.  Similarly, the prices of construction sand, which is the main component in various construction projects, have increased in the range of 10% to 40%, depending on the quality. This variability highlights the subtle nature of price dynamics in the building materials market, where factors such as scarcity, quality differentiation and transportation costs can significantly affect the pricing structure.

Conversely, it is noteworthy that prices for many building materials remained relatively stable, indicating the degree of stability of certain market segments.