{"id":88735,"date":"2025-04-03T06:06:45","date_gmt":"2025-04-03T06:06:45","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/the-worst-is-over-for-europes-building-materials-industry\/"},"modified":"2025-09-18T17:30:14","modified_gmt":"2025-09-18T17:30:14","slug":"the-worst-is-over-for-europes-building-materials-industry","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/the-worst-is-over-for-europes-building-materials-industry\/","title":{"rendered":"The worst is over for Europe\u2019s building materials industry"},"content":{"rendered":"

The European building materials industry is beginning to rebound after experiencing a significant decline. According to a recent report by ING, this recovery is expected to continue as the housing market steadily improves. US import tariffs on EU products are projected to have a minimal impact on most European building material suppliers.<\/p>\n

Further recovery expected in the building materials industry<\/strong><\/p>\n

ING anticipates a further revival of the building materials industry in 2025, encompassing concrete, cement, and bricks. The sector faced substantial difficulties in 2022 and 2023 due to a decline in demand for new houses, the primary market for companies producing these materials.<\/p>\n

However, house prices for existing homes have started to rise in many European countries. This is a positive indicator for new developments, as newly built and existing home prices typically move in tandem; they cannot diverge significantly since they serve as substitutes for consumers. Therefore, increased new housing developments will drive demand for building materials.<\/p>\n

In most European countries, building material suppliers saw production levels plummet in 2022 and 2023. Volumes declined by almost 15% in Spain and by around 25% in Belgium and Germany at the beginning of last year. However, early signs of recovery appeared in 2024. Poland and the Netherlands experienced the strongest rebounds, with production increasing by 16% and 12%, respectively. In Germany, production remains at a low level but has started to rise gradually.<\/p>\n

Only France and Austria continued to see declining volumes. According to a European Commission business survey, building material companies in these two countries were the most pessimistic about production outlooks in early 2025.<\/p>\n

Overall, ING expects the sector to see gradual improvement throughout 2025. High structural demand for housing in urban European areas, coupled with rising house prices, is strengthening the business case for new housing developments and, consequently, increasing demand for building materials. However, higher interest rates may slow the pace of recovery.<\/p>\n

Prices of concrete, cement, and bricks remain stable<\/strong><\/p>\n

Building material prices, such as concrete, have remained stable over the past two years despite the slowdown in demand. While price declines might be expected, concrete, cement, and brick prices have remained resilient.<\/p>\n

These materials are heavy and bulky, meaning they are typically traded in local markets with limited competition. This allows suppliers to maintain pricing power, resulting in both higher prices and lower price volatility. Unlike more competitive materials like steel, concrete and cement suppliers are not compelled to immediately pass on raw material or energy cost reductions. As a result, price fluctuations in these materials tend to be slower.<\/p>\n

\"\"<\/a>Timber prices continue to rise<\/strong><\/p>\n

Timber prices have been rising. Costs were 7% higher in January 2025 compared to a year earlier, following a 4% decline in 2023. Plastic prices, on the other hand, have remained stable over the past two years.<\/p>\n

US import tariffs won\u2019t harm the EU concrete, brick, and cement sector<\/strong><\/p>\n

Many building materials, such as concrete, bricks, and cement, are heavy and costly to transport, limiting exports from the EU to the US. For most building material categories, EU countries export less than 3-4% of their production to the US. France and Spain have slightly higher export shares for lime, cement, and fabricated construction materials, but the volumes remain small. For instance, French building material suppliers exported only \u20ac55m worth of products to the US in 2024.<\/p>\n

Spain is the largest EU exporter of gypsum to the US, with exports reaching $85m\u2014more than Mexico and Canada. However, this remains a small fraction compared to the total EU building material output, which exceeds \u20ac260bn annually for concrete, cement, and bricks alone. Consequently, US import tariffs are unlikely to significantly impact the broader European building materials industry. However, specific companies may feel the effects, and tariffs on metals could influence EU prices due to changes in trade patterns.<\/p>\n

Few producers expect price changes<\/strong><\/p>\n

It appears that building material prices will remain stable in the near future. In a European Commission survey conducted in February, only a small percentage of EU concrete, cement, and brick suppliers anticipated increasing sales prices over the next three months. This suggests that demand, while improving, remains relatively low, limiting opportunities for price hikes. Additionally, raw material costs, such as sand, have remained stable over the past year, further contributing to price consistency.<\/p>\n

While the European building materials industry has endured a difficult period, signs of recovery are becoming evident. ING\u2019s analysis suggests that improving housing market conditions will support further growth in 2025, with stable prices and gradually rising production levels reinforcing the sector\u2019s rebound.<\/p>","protected":false},"excerpt":{"rendered":"

The European building materials industry is beginning to rebound after experiencing a significant decline. According to a recent report by ING, this recovery is expected to continue as the housing market steadily improves. US import tariffs on EU products are … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":83889,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","topic-forestry","topic-lumber","topic-sawmilling","topic-statistics","topic-wood-construction","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\nThe worst is over for Europe\u2019s building materials industry - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/the-worst-is-over-for-europes-building-materials-industry\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The worst is over for Europe\u2019s building materials industry - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The European building materials industry is beginning to rebound after experiencing a significant decline. 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