Producers and suppliers of construction materials are dealing with rising prices of raw materials, semi-finished products and lots of different types of products. Insecurity of input raw material supplies for production is on the rise as well. This is due to the concurrence of many unfavourable circumstances.
Plastics are now being directed primarily to healthcare, mainly for the production of protective aids against virus transmission. A large amount of plastics is used for disposable food containers or packaging of goods, which is now more than ever ordered online. The outage of production capacity of global plastics producers in the USA has the biggest impact on plastics prices. Lack of plastics in the US influences significantly the quantity of plastics available on European markets. The subsequent withdrawal of plastics from China and Europe significantly contributes to logistics complications. Insufficient capacity of transport ships, aircraft and rail transport makes delivery times longer.
Reduction or termination of production of some smelters in Europe, rising emission allowance prices, tariff restrictions and a shortage of metals from Asia are contributing to raise metal prices. It is seen on the London Metal Exchange.
Although the long-term bark beetle calamity is not at its end yet, foresters have succeeded in stopping it in many places in the Czech Republic. Logging of bark beetle timber is decreasing and its price increases. The increase is caused not only by the decrease in logging, but also by export of this timber abroad, particularly to China, which is a phenomenon of the last two years.
Pandemic restrictions have impact on availability of workers for materials production, products logistics, sale and on-site assembly. There was a slowdown in construction output in spring and summer 2020. However, a recovery phase has been seen recently and demand for many materials exceeds supply.