Construction Material Prices Rise 6.3% in June
Construction material prices surged 6.3% year-on-year in June 2025, driven by elevated energy and transportation costs, with electrical equipment and other materials jumping over 10% due to global commodity pressures.
The Office of Trade and Strategy Policy announced that the construction material price index for June 2025 reached 113.3, representing a 6.3% increase compared to June 2024, though the rate of growth has slowed. All material categories showed price increases driven by elevated energy and transportation costs. Wood and wood products rose 4.5% due to higher raw material and shipping costs tied to oil prices. Cement prices increased 1.3% from demand in government construction projects. Concrete products surged 10.6% as raw material and diesel transportation costs climbed. Steel and steel products rose 2.0% due to higher billet and scrap prices alongside elevated shipping and freight costs. Tiles increased 2.8% from higher natural gas and raw material costs. Coating materials rose 2.2% as paint and resin prices climbed. Sanitary ware went up 2.7% from increased energy consumption in production. Electrical and plumbing equipment jumped 12.3% following rising global copper prices driven by demand in infrastructure, clean energy, and advanced technology sectors. Other building materials climbed 11.2% from increased glass and aluminum prices, with rubber rising alongside global oil prices amid Middle East tensions. The office projects third-quarter 2025 will see continued expansion due to high oil and energy prices expected to persist despite regional ceasefire developments, as refineries and natural gas facilities in the Middle East require time for repairs and recovery.
