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Faisal Al Muhaidib, CEO of Masdar for Building Materials
Global prices of building materials fell in Q2 2022 compared to the previous quarter due to lower freight rates, higher interest rates and weak demand in Europe, Faisal Al Muhaidib, CEO of Masdar for Building Materials, told Argaam on the sidelines of Saudi International Iron & Steel Conference held in Riyadh.
He added that this led to an almost 35% decline in iron and wood prices.
Building materials fluctuated significantly over the last 12 months, as global markets, which have not yet recovered from coronavirus, suffered from the limited number of freight carriers and an increase in rates, which led to a major decline in prices.
As supply chains improved, war broke out between Russia and Ukraine, which are among the world’s largest iron and wood producers, the CEO said.
He noted that this turmoil affected the global prices of energy and raw materials. Prices increased by 35-50% at the beginning of Q1 2022.
Al Muhaidib expected prices to stabilize in the coming period, ruling out the latest significant increases that took place in exceptional circumstances. He added that demand for mega projects in the Saudi market will be strong.
Masdar is 100%-owned by Abdul Kadir Al-Muhaidib & Sons Co. It is the main distributor of building materials and architectural equipment, including steel, wood, insulation products, equipment, plumbing, electricity, cement and bricks. It focuses on meeting local demand and holds a large market share in the Saudi market. Masdar operates in 29 Saudi cities through 105 branches.
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