Ukraine occupied a significant place in the supply chains of construction materials to the world market. It also occupied an important place in the list of suppliers of building materials for developers of the United Arab Emirates.
For instance, Ukrainian exporters sold high-quality structural steel in the UAE.
Military operations, sanctions and other derivative factors do not allow Ukrainian companies to continue to supply materials to countries such as the Arab Emirates.
After the «loss» of the major player from the world market of building materials, the total prices for such goods began to grow rapidly. At the same time, this growth is superimposed on the price increase already formed by the impact of the COVID-19 pandemic.
Until February 24, steel purchased in Ukraine cost developers approximately USD 960-1000 per ton.
At the moment, the developers of the UAE state that these events should not significantly affect the cost of the final product, but experts point out that this statement is true only if the price of steel does not exceed USD 1,200.
Those projects that developers have already launched into development are unlikely to suffer from the current situation, since most of the materials for them have already been delivered and sent to work.
However, projects that are only due to be launched in 2022 will definitely experience the consequences of price increases.
But in the end, the end customer pays for everything.
