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Building materials price inflation eases 

Construction

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The price of building materials, such as wood and steel, has fallen 10-15% as local businesses have sought alternative suppliers, construction industry association ÉVOSZ said on Monday, according to a report by state news wire MTI.

"The easing of tensions on global markets and orders of high-turnover building material traders from alternative import markets has resulted in a 10-15% price reduction on the market for critical building materials from September 1," ÉVOSZ said.

"Contractors and traders expect deliveries from Asia to remain uncertain and expensive for the rest of the year. A practical solution is to have materials delivered mainly from neighboring countries, through long-time business connections," it added.

ÉVOSZ also acknowledged the impact of government measures on falling prices and said the decline would pass through to consumers.

The association said competition on the local building materials market is "significant" and there are "no dominant, market-distorting positions" that could impact prices.

ÉVOSZ drew the conclusions based on an assessment by Hungary's biggest building material traders, including Akker-Plus, Lambda System, Masterplast, Piramis and újHÁZ, as well as Márton Nagy, an advisor to the prime minister, and government commissioner Csaba Gyutai.

Hungary's government announced measures to curb runaway building materials prices in the summer, including an excess-profit tax and mandatory reporting of exports. It also launched a targeted probe of building materials sellers.

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