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Construction supplies sales plummeted 32% in June - Infobae
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La venta de insumos para la construcción se desplomó el 32% en junio
Así lo confirmó el Índice Construya, que mide la evolución de los volúmenes vendidos al sector privado de los productos para este rubro; se registró una recuperación mensual desestacionalizada
www.infobae.com
July 04, 2024
This was confirmed by the Construya Index, which measures the evolution of the volumes sold to the private sector of products for this sector; a seasonally adjusted monthly recovery was recorded.
Currently, more than 50,000 homes are still under construction in CABA
In June, the Construya Index (IC), which measures the evolution of the volumes of construction products sold to the private sector, recorded a seasonally adjusted monthly recovery of 9.74%.
However, this slight month-on-month recovery remained 32% below the June 2023 level.
“For the third consecutive month, we have recovered the levels of material shipments. We are seeing a gradual improvement, after several months of a deep contraction. We see this as a positive trend. We believe that the return of credit and the 12 interest-free installments are contributing to the recovery of demand,” explains Construya.
Thus, on average, during January-June 2024, Construya Group shipments were 32.8% lower than those made during the first five months of 2023.
The index measures the evolution of the volumes sold to the private sector of construction products manufactured by the companies that make up the Construya Group, including: ceramic bricks, Portland cement, lime, long steel, aluminum carpentry, adhesives and pastes, waterproofing paints, sanitary ware, boilers and home systems and central heating, taps and systems for water and gas conduction, floors, ceramic coverings and electrical and electronic materials.
It is important to clarify that the Synthetic Indicator of Construction Activity (ISAC) that reflects the evolution of the construction sector based on the behavior of a set of representative inputs that will be published will refer to the month of May 2024, therefore, it is not comparable with this Construya Index, corresponding to the month of June, as reported by the entity.
What about prices
In recent weeks, several construction materials, such as cement, PVC, taps, steel and paints, have seen a significant drop in their prices, with estimated decreases of between 20% and 30% in the first half of the year compared to December.The reduction in public works and private jobs impacted demand, forcing lumberyards and paint shops to implement discounts and strategies to attract buyers.
Housing construction costs have seen a significant increase in recent months. In May (last report), according to the Association of Construction SMEs (Apymeco), costs increased by 264.97% compared to the same period last year, reaching a value of $1,343,284.83 per square meter.
Paints, PVC and taps are among the materials and supplies that have seen the biggest price drops in recent weeks (Photo: Nicolás Stulberg)
Apymeco also confirmed that the slowdown in prices is already being seen. In May, the last month surveyed, prices rose only 3.74% month-on-month, the lowest increase recorded in the last 18 months. This increase, attributed to factors such as inflation, the volatility of the dollar and the lack of confidence in the new government that took office seven months ago, put those seeking to access their own home or make improvements to their homes in a difficult situation.
However, the sector maintains that little by little the clouds are beginning to dissipate.
A slowdown in the prices of materials and tools has been confirmed in recent days. The lack of sales due to the slower pace of large-scale construction and the halt in public works led to a situation in which some products registered a decrease of between 7% and 12% from April to May.
Matías Hernández , from Apymeco, commented that the slowdown in the increase in the cost of inputs in construction generates an optimistic perspective for the reactivation of private works. “After a period of rising prices of materials that negatively affected the launch of new projects, a slowdown in these increases was recently observed,” he said.
Dealers, affected by the recession, are stocking up and prefer to sell at purchase price rather than at replacement price. In May, there was a corresponding increase in the cost of labor. The price per square meter in dollars showed a 15.12% drop, from USD 1,251.08 to USD 1,061.89 per square meter.
The lowest monthly increases, according to Apymeco, are the following:
- Round iron: -2.93%
- Fire installation materials: -4.47%
- Sanitary installation materials: -7.25%
