Construction materials

What does this mean for the real estate market?

ROTKREUZ, Swiss, August 16, 2022 /PRNewswire/ — According to Orit Shifman, CEO and Founder of ARK TRADE AG, recent estimates of insights generated by ARK TRADE’s AI-powered digital trading platform indicate that prices for steel, aluminum and copper are at their lowest level since January 2022while the cost of wood is significantly lower than prices at the beginning of the year. Orit ShifmanCEO and Founder of ARK TRADE: “Our AI platform believes that steel prices will continue to be affected by ongoing global crises.”

  • Steel: currently traded at $618 (USD) per ton; 20.7% less than the maximum price and 10% less than the price at the beginning of 2022
  • Aluminum: currently traded at $2,434 (USD) per ton; a steep drop of 36.7% from the peak price and 14% below the price at the start of 2022
  • Copper: currently traded at $3.67 (USD) per pound; 25.5% less than the maximum price and 17% less than the price at the beginning of 2022
  • Wood (per 1,000 feet): Currently trading at $588 (USD) by FBM. Commonly used in home construction UNITED STATESprices significantly lower than those at the start of 2022

As with many other traded commodities, this year we have seen the prices of materials used in construction and public infrastructure soar. However, the analysis generated by the artificial intelligence (AI) that powers ARK TRADE’s digital platform, indicates a significant drop in the prices of these materials, with the prices of steel, aluminum and copper even lower than their price at the beginning of the year.

“ARK TRADE AI information estimates that steel prices will continue to be affected by the ongoing global crisis,” said Orit Shifman.

steel rebar is a primary material for the construction industry, used to create the base of poured floors and ceilings, and as a base for support beams. The majority of the steel trade takes place in Chinawhere it was at the cost of $686 (USD) per tonne at the start of 2022. In May, the price rose to $770 per ton. Today the price is at its lowest $618 (USD) per tonne, 20.7% lower than its peak price and 10% lower than it was at the start of the year.

Estimates at ARK TRADE say fears of disruption along steel supply chains and fears of further price hikes have prompted importers to place much larger orders than necessary. Many of these importers now hold large stocks and are reluctant to accept new orders for the material. According to information generated by ARK TRADE’s AI, the system estimates that the parameter of “global crises”, which includes inflation, interest rate hikes, fear of recession and a slowdown in real estate purchases , is likely to have a major impact on the price of Steel in the near future. It estimates that more than 32% of the short-term steel price differential will be affected.

Aluminum, also widely used in construction, especially in infrastructure and finishings, recorded strong price fluctuations. At the start of 2022, aluminum was trading at $2,840 (USD) before jumping 35%, to $3,850 per ton, beginning of March. From August 12, Aluminum is trading at $2,434 per tonne, plunging 36.7% below this year’s record price and 14% below its January price.

ARK TRADE reasons why recent COVID restrictions were lifted in China, the world’s largest aluminum consumer, factories have resumed full production. Falling demand for the metal, used in power infrastructure, real estate and the automotive industry, has caused the market to flood with aluminum and prices to drop sharply.

Copperalso used for electricity and energy infrastructure, started 2022 at $4.42 (USD) per pound, peaking at $4.93 in March, then down 28% to trade at $3.67 per pound from August 12, 17% less than the January price. ARK TRADE suggests that this can largely be attributed to the larger copper mine in Peru back to full production after Covid.

Construction wood (per 1,000 feet) sold at $1,112 (USD) at the beginning of the year, reached $1,464 in March. Curiously, the strong demand for housing in the United States, where wood is the predominant building material, had no effect on its price. In fact, the current price of wood is $588 – significantly lower than at the start of the year.

ARK TRADE AI Insight Estimates: Steel prices will continue to be affected by global crises.

ARK TRADEfounded by entrepreneur Orit Shifman, has developed a proprietary AI digital platform for the global trading of raw materials and finished goods. The platform gathers huge amounts of data from around the world, including information that is not regularly used by analysts, all with varying levels of impact on product price and availability. In it, financial data, news reports, weather forecasts, global warming, local and international politics, COVID reports, and social media are all merged, processed, and analyzed. ARK TRADE pointed out that so far, 2022 has been characterized by the strong impact of the “global crisis” parameter of its system on commodity prices, such as war and its impact on the market for agricultural commodities, or l influence of recent inflation and growing concern for a possible global recession.

ARK TRADE estimate that according to the set of verified commodity prices, the “product price” parameter is the predominant parameter when estimating future demand. Among the many parameters analyzed by ARK TRADE’s AI that are classified as having an impact on the short-term price fluctuation of certain commodities, the system has estimated that the “product price” parameter will be between 68 % in steel and 55% in aluminium. , 40% copper.

That said, estimates of future steel prices remain sensitive to “global crises”, with the weight of this parameter contributing 32% of its estimated future price and 22% of future aluminum and copper prices. The same parameter is assessed as contributing 28% of the estimated future price of lumber (1,000 feet).

Fluctuating prices of raw materials and materials used in construction (in USD)

Product

Price January 3rd

Peak price

Current price
(August 12st)

Price drop
Since early 2022

Steel

(for 1 ton)

$686

$770 (May 5e)

$618

-ten %

Aluminum

(for 1 ton)

$2,840

$3,850 (March 4e)

$2,434

-14%

Copper

(for 1 pound)

$4.42

$4.93 (March 4e)

$3.67

-17%

Construction wood

(per 1,000 feet)

$1,112

$1,464 (March 3rd)

$588

-47%

It is hereby clarified that the above information, including but not limited to data, analysis, conclusions and details, does not constitute professional recommendations or advice of any kind, and such information is not provided for be used or relied upon as advice or consultation regarding investment, tax, finance and/or legal matters. All of the above is an estimate only and is not intended to include all relevant details and data relating to the matters at issue and is subject to change.

Photo – https://mma.prnewswire.com/media/1879013/Orit_Shifman_ARK_TRADE_AG.jpg
Logo – https://mma.prnewswire.com/media/1860230/ARK_TRADE_Logo.jpg

Contact:
[email protected]

SOURCE ARK TRADE AG


Source link