Thailand Construction Material Prices Jump 6.1% in August
Construction material prices in Thailand surged 6.1% year-over-year in August, driven by geopolitical tensions affecting oil and energy costs across cement, concrete, electrical equipment, and wood product categories.
The Office of Trade and Economic Policy Strategy says the construction material price index for August 2025 stands at 113.1, up 6.1% from August 2024, continuing its upward trend. Nanthapong Jiralerk, director of the Office of Trade and Economic Policy Strategy, attributes the rise to geopolitical tensions in multiple regions. US economic sanctions on Iran and Ukrainian attacks on Russian energy infrastructure have driven oil and energy prices to volatile high levels, disrupting production and logistics chains for construction materials across nearly all categories.
Wood and wood products rose 4.5% due to higher prices for window and door frames, driven by increased raw material and transport costs tied to oil prices. Concrete products surged 9.6% as ready-mix concrete, precast beams, and drainage pipes saw price increases stemming from higher raw material costs (cement, stone, sand) and increased diesel transport costs compared to last year. Tiles climbed 4.0% from higher production costs driven by natural gas energy prices and raw materials like colorants and mineral silica needed in high-heat manufacturing.
Surface coating materials rose 1.7% as paint prices adjusted upward based on raw material costs. Sanitary ware increased 3.7% due to higher energy consumption in production. Electrical and plumbing equipment surged 12.7% as all wire types, including THW cable, NYY power cable, VCT wire, and VAF wire, climbed with rising global copper prices driven by demand in infrastructure, clean energy, and advanced technology. Other construction materials jumped 15.7% as rubber wood prices followed petroleum product prices affected by geopolitical tensions, alongside natural materials seeing cost increases from higher fuel and operational expenses.
Cement prices fell 0.2% due to high competition, while steel and steel products dropped 0.6% as excess Chinese supply continued to pressure global and domestic steel prices. The index is expected to continue expanding in September 2025 based on multiple factors.
