Hello,
we want to build in the foreseeable future and are considering where building material prices will likely go over the next 12-24 months in view of America’s tariff madness. How do you assess this??? Will China fill the gap?
Hello,
the price development of building materials is currently indeed difficult to estimate, especially due to the tense global trade situation. US tariffs on Chinese products, particularly in the areas of steel, aluminum, and other industrial goods, are causing global supply chains to shift. Europe is not entirely disconnected from this either – trade flows are changing, and in some cases, prices here are also rising due to rerouting, even if no direct tariffs apply.
Additional uncertainties come into play: raw material prices are generally quite volatile, driven among other things by energy prices, geopolitical tensions, and logistical bottlenecks (e.g., freight rates, transport through the Suez Canal, etc.). Also, in China itself, there are occasionally measures (e.g., environmental protection regulations in industry) that can temporarily restrict production or lead to higher prices.
To what extent China will step in to fill the gap in the short term depends on in which areas alternatives are sought. Some markets (wood, certain plastics, semi-finished products) are significantly dependent on China, others less so. Europe is partly trying to create new sources of supply, but this often doesn’t happen quickly enough to offset price increases.
Regarding the next 12–24 months: most experts still expect price fluctuations and a generally rather high price level because uncertainties will remain. Individual products may decrease in price if, for example, inventories have been built up or demand eases (as with wood in 2023), but overall the level remains above the long-term average.
For builders, it is advisable to plan with a buffer in the calculation and to secure offers and material orders as early as possible. This reduces the risk of being surprised by short-term spikes. Moreover, a conversation with local building material dealers can be worthwhile, as they can assess which materials are likely to see tightening or easing.
Ultimately, the issue depends on many external factors – it cannot be predicted completely, but a significant price reduction is not to be expected in the short term.
Schnackischnak