Concrete manufacturers further pressured by soaring energy prices, low water and looming shortage of raw materials

The Russian-Ukrainian war has consequences, including for Dutch concrete factories and concrete plants. They will be affected after the price of CO₂-rights in the European Trading System (ETS) now also faces a sharp increase in energy prices. Betonhuis is warning clients and contractors to take into account a price increase on concrete and concrete products.

"Fuel and energy prices are rising rapidly and shortages of raw materials are also increasing. We need to avoid stagnation due to the major uncertainties that are now creeping into the market," said Ron Peters, director of Concrete House. The industry association is currently seeing unprecedented market developments. "We have to deal with that in all fairness. We are facing a huge sustainable construction task in the Netherlands and it will be compromised otherwise."

The entire raw materials market has currently become unstable and the concrete industry will also be affected. Scarcity is noticeable in gravel and sand. This is caused by the lack of permits for future extraction. The limited availability of circular products such as blast furnace slag and pulverized coal fly ash is also affecting the industry. "This circular flow is coming under increasing pressure. The demand for circular products is increasing and causing logistical problems. In addition, reinforcing steel that is important to the industry is also coming under pressure. The result is that supplies will stagnate and prices will rise," Peters said.

Back in September 2021, Betonhuis also announced a price increase. The European Trading System (ETS) was one of the causes then. "This ETS is still playing a big role because it has risen exorbitantly in one year." (source: ember-climate.org) Added to this is the fact that drought is affecting the industry and low water is already a current problem. All the effects add up and therefore I expect these effects to cause prices to rise further. How much and when is difficult to say because they fluctuate daily."