Wood prices in the Middle East remain stable over past six months

Wood prices in the Middle East remain stable over past six months

Danube Building Materials seeks to address increase in demand for wood as many construction projects are set to be completed
January 03, 2011

Danube Building Materials, the leader in construction, building materials and shop fitting industries, has announced that wood prices in the Middle East have remained stable over the past six months. According to statistics released by Danube Building Materials, wood prices began to stabilize starting the third quarter of 2010 and have remained stable ever since. Danube notes that the price for Medium Density Fibreboard (MDF) has been USD 285 per CBM, while the Malaysian Hardwood Plywood was priced at USD 495 per CBM.

According to Danube, the pricing for Film Face Plywood was pegged at USD 375 per CBM, and the Meranti Wood pricing saw an increase of 0.67 per cent from USD 750 to USD 755 per ton. The price of American Ash Wood meanwhile saw a 1.2 per cent decrease and was priced at USD 825 per CBM. The price of European Beechwood increased by 1.19 per cent, from USD 550 to USD 555. On the other hand, African Teak Wood called Iroko has been priced at USD 1,100 per CBM.

“We believe that the stabilisation of wood prices coupled with the current regional market situation where several construction projects are nearing completion, will considerably boost demand for wood. Danube is well-positioned to capitalise on this demand and cater to the diverse requirements of this dynamic market with our broad range of high quality products,” said Rizwan Sajan, Chairman, Danube Building Materials.

The company recently announced that in the next five years, it plans to list itself in Saudi Arabia and the UAE for an initial public offering (IPO). This decision was taken, following the significant growth it had achieved in recent years in terms of geographical expansion and achievement of revenue targets. Danube Building Materials also revealed that it is also open to dual listing in both countries, as part of its aims to secure AED 2.5 billion to AED 3 billion in total revenues in the next three to four years.

“An IPO listing can spur regional growth for Danube and help us become more profitable through optimum use of the revenue generated. Meanwhile, we will remain focused on consolidating our presence in the GCC region, and look to replicate the success we have achieved in the UAE across key regional markets,” concluded Sajan.

About Danube Building Materials FZCO
Established in 1993, Danube Building Materials FZCO provides more than 25,000 products in stock and in-house value added services in all of its 17 showrooms across the UAE. The company operates from its head offices – a 285,000 square foot facility in Jafza north and a 365,000 square feet base in Jafza south, which houses its logistics centre, kiln drying facility, factory and warehouses. From a small trading firm, Danube has grown into one of the largest building materials company in the region, with 25 branches worldwide - 17 in the UAE, one in Saudi Arabia, two each in Bahrain and Oman and three in India, in addition to procurement offices in China and Canada. Danube has a team of 1000 people working from strategic locations in across the Emirates, including Jebel Ali, Deira and Abu Dhabi. The company has been and is currently involved in major projects across the UAE, Oman and Bahrain, including Emirates Hills, the Burj Al Arab, Shangri-La Hotel, Grand Hyatt, Motor City, Burj Dubai, Dubai Airport Terminal 3, Yas Island, Reem Island, Saadiyat Island, and Al Raha Beach Hotel, among others.

Wood prices in the Middle East remain stable from July to August

Wood prices in the Middle East remain stable from July to August

Danube seeks to address increase in demand for wood as many regional developments approach completion

August 26, 2009

Wood prices continue to remain stable since rates recorded in July until the second week of August, a significant development that follows 18 months of continuously declining prices, according to Danube. As the market witnesses heightened buying activity within the building materials sector, Danube Building Materials, the leader in construction, building materials and shop fitting industries, has announced its aims to address the increased demand for wood, especially with many regional developments approaching their completion.

According to statistics released by Danube, wood prices began to stabilize in the first week of July, and are expected to increase further in the coming months. In addition, prices of other building materials continue to register growth, including steel props, which rose to AED 45 per piece from AED 42; scaffolding planks, which are currently being sold at AED 59 per piece from AED 58; and Red Meranti from West Malaysia, which has increased to AED 2,750 per ton from AED 2,700. The only product, which has seen a dip in price versus the rate in May is cement, which now wholesales at AED 15 per bag from AED 16.

“Prices of wood have dipped to its lowest in the first quarter this year, which is a tremendous development for developers who are nearing the completion of their projects and are gearing up for delivery this year,” said Rizwan Sajan, Chairman, Danube Building Materials. “With factors such as fluctuating supply of raw materials and the current correction in the real estate and property market, we anticipate the prices to increase further. Our goal is to leverage this shift by delivering top-quality products to major projects and developments across the region.”

In addition to wood, Danube also named other products, which have seen no variation in their retail prices, including Russian Beechwood, 6mm glass, aluminum profiles, film faced plywood (KINGPLUS), and medium density fibreboards (MDFs). European Whitewood has also seen an increase in prices within the same period, from AED 1,050 per cubic metre to AED 1,075.

“The continuous change in prices of building materials is indicative of an impending recovery phase for the construction and property development sectors, and we are expecting the results of this excellent new update in prices to further fuel activities within the region’s construction arena. We are committed to meeting the building material needs of all customers, which we continue to reiterate with our efforts to expand our operations across the region,” concluded Sajan.