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Rise in gas prices to affect cost of all categories of building materials – experts

KYIV. Oct 13 (Interfax-Ukraine) – The rise in gas prices will lead to an increase in the cost of production of all categories of building materials, primarily the most energy-consuming industries, according to representatives of various associations of building materials manufacturers.

"The rise in gas prices will indeed directly affect the end consumers of almost the entire range of building materials – each producer consumes gas. As long as there are stocks in the warehouses, for the production of which gas was used at the previous prices, there is a possibility that it will be sold at the same prices. The products manufactured using more expensive gas will be sold at proportionally increased prices," President of the Ukrainian Union of Building Materials Producers Kostiantyn Saliy told Interfax-Ukraine.

According to him, the current state apparatus cannot provide cheaper domestic gas to consumers in the manufacturing sector, as it happened in the 1990s.

The increase in the cost of building materials will also affect the cost of residential and commercial space, which will increase the pressure on the budgets of state construction programs, and also jeopardize the implementation of plans for construction volumes within the funding for 2021.

Saliy said that some types of building materials cannot be produced without a significant loss of quality in conditions of gas shortage. Among them are ceramic tiles and bricks, nails, hardware of all types, fittings.

First of all, the most energy-intensive production will suffer from the rise in gas prices, Executive Director of the Ukrainian Association of Autoclaved Aerated Concrete Producers Oleg Syrotin told Interfax-Ukraine.

"The production of autoclaved aerated concrete relative to the production of ceramic or silicate bricks is more energy efficient. Let’s hope that the current situation with the price of gas will not lead to a halt in its production," he said.

At the same time, the expert is convinced that an increase in gas prices will inevitably lead to an increase in the cost of autoclaved aerated concrete production, and, accordingly, the selling prices for products.

According to Syrotin, in addition to gas prices, the question of uninterrupted and reliable gas supplies in the winter remains open.