Wood prices stabilise in Middle East

Wood prices have stablilised over the past six months in the Middle East, said one of the largest suppliers of building material in the region.

Danube Building Materials noted that the price for medium density fibreboard (MDF) has been $285 per cubic metre (CBM), while the Malaysian Hardwood Plywood was priced at $495 per CBM.

The pricing for film face plywood was pegged at $375 per CBM, and the meranti wood pricing saw an increase of 0.67 per cent from $750 to $755 per tonne. The price of American ash wood meanwhile saw a 1.2 per cent decrease and was priced at $825 per CBM. The price of European Beechwood increased by 1.19 per cent, from $550 to $555. On the other hand, African Teak Wood called Iroko has been priced at $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,” 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 Dh2.5 billion to Dh3 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.

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