Construction Material Prices Surge 7.4% Amid Middle East Conflict
Thailand's construction material price index rose 7.4% in October 2026 compared to the previous year, reaching 114.3, driven by Middle East conflict pushing up global energy costs. Most material categories increased, notably electrical wiring (13.4%) and other materials (21.8%), while cement and steel saw marginal declines. Officials expect prices to keep rising in November if energy tensions persist.
The Trade Policy and Strategy Office reported that Thailand's construction material price index for October 2026 reached 114.3, up 7.4% year-on-year. The increase was driven by escalating Middle East tensions after Houthi rebels in Yemen intensified attacks on Saudi energy infrastructure, pushing global oil and energy prices higher.
Categories with notable price increases included wood and wood products, up 4.4% due to higher transport costs for window and door frames linked to global energy prices. Concrete products rose 9.5% as ready-mix concrete, precast beams, prestressed concrete floors, and concrete drainage pipes increased on higher raw material costs (cement, stone, sand). Tiles climbed 6.2% on higher production costs for glazed floor tiles, PVC wall panels, and concrete roof tiles, driven by rising natural gas prices used in manufacturing. Surface materials rose 3.5% due to higher prices for oil-based paints and acrylic paints, following petrochemical raw material costs. Sanitary ware increased 5.9% on higher ceramic washbasins, mirrors, and toilets, reflecting rising raw material and energy costs. Electrical and plumbing equipment surged 13.4% as all wire types — including THW, NYY, VCT, and VAF cables — rose on higher global copper prices, driven by growing demand from AI industry expansion and data center construction. PVC pipes also increased on higher plastic pellet prices. Other construction materials jumped 21.8% as rubber prices rose with petroleum products affected by the prolonged and intensifying geopolitical conflict in the Middle East, impacting global oil supply. Natural materials (stone, soil, sand) also rose due to higher fuel costs for machinery and increased operating expenses.
Categories that declined included cement, down 0.5% on lower mixed cement prices due to promotional sales by manufacturers. Steel and steel products fell 0.1% on lower prices for deformed and plain round bars, galvanized steel sheets, and binding wire amid intense price competition.
The construction material price index for November 2026 is expected to continue expanding year-on-year. The key driver remains the prolonged Middle East conflict, which is escalating further after Houthi attacks on Saudi energy infrastructure, directly affecting global oil and energy stability. This situation impacts energy costs for key construction material production such as steel, cement, tiles, and sanitary ware — industries that require high heat in manufacturing and cannot avoid pressure from soaring energy costs. However, if the energy situation eases, the rate of increase may moderate.
