World situation turmoil Thai building materials prices keep rising

According to a recent report by Thailand’s “World News”, the former Thai Construction Association’s President Chang Yuyi disclosed that the construction of houses and the construction of various projects at this stage require great attention, because the price of steel has risen by 15% in the past 2-3 months, and has continued to rise. trend. The report pointed out that there are four major factors driving the price increase of building materials.

The first factor is that the political situation in the Arab countries is turbulent, making oil prices soar to $100 a barrel. Although the winter in Europe and the United States is coming to an end, the price of oil has not fallen as it did in previous years. As raw materials for building materials production, as well as crude oil for transportation purposes (111.96, 0.51, 0.46%), its high price has become a major factor in the rise of building materials.

The second factor After the earthquake and tsunami in Japan, many cities urgently needed a lot of construction materials to rebuild, which will lead to tight supply and demand of global building materials. When demand exceeds supply, the price of building materials soars naturally.

The third factor is that Thailand’s inflation rate is higher and interest rates are also rising, which increases the investment cost of the construction industry.

The fourth factor Thailand's government plans to raise the minimum wage by 25-50%.

This policy will deal a blow to the contractor construction industry because construction workers' salaries account for a significant portion of project revenue. In addition, the uncertainty of this policy will cause contractors to evaluate the project.

The Housing Bank’s real estate center cooperated with the building agency to hold a “Standard Housing Price Index” survey activity in Bangkok. The report pointed out that the construction price index for the first quarter of 2011 was 131.7, which was 2.1 higher than the 129.6 in the last quarter of 2010, compared to the previous year. The 127.7 rise.