Bangkok: The Trade Policy and Strategy Office (TPSO) has reported a significant 5.8% year-on-year increase in the construction materials price index for July 2026, primarily driven by escalating raw material, energy, and transportation costs due to the ongoing conflict in the Middle East. Electrical and plumbing equipment prices saw a notable surge of 12.6%, influenced by rising copper prices. This trend is anticipated to persist into August.
According to Thai News Agency, Mr. Nantapong Chiraleartpong, Director of the Office of Trade Policy and Strategy (OTPS), disclosed that the construction materials price index reached 112.8 in July 2026, marking a 5.8% increase compared to the same period last year. The uptick was attributed to heightened production costs, particularly those of raw materials, energy, and transportation, all of which have been affected by the Middle East conflict.
However, a month-on-month comparison with June 2026 revealed a 0.4% decline in the index, attributed to reduced cement prices. The rainy season's onset led to slower sales, prompting manufacturers to lower prices to stimulate demand, which in turn caused a decrease in concrete product prices. Conversely, steel and steel product prices faced downward pressure from an overseas steel oversupply.
Year-on-year, other construction materials experienced the largest price increase at 13.0%, particularly asphalt, which adjusted in line with global oil prices. Increased fuel costs for machinery also pushed up prices for rock, soil, and sand.
Electrical and plumbing supplies followed with a 12.6% rise, spurred by increased global copper prices in response to heightened demand from infrastructure, clean energy, and advanced technology sectors. PVC pipe prices also climbed due to the rising cost of plastic resin, further impacted by the Middle East conflict.
Concrete products saw a 9.3% price hike, encompassing ready-mixed concrete and various precast and prestressed concrete items, driven by higher cement, stone, sand, and transportation costs. Additionally, wood and wood products, tiles, sanitary ware, and surface coating materials experienced price increases of 4.7%, 3.2%, 2.6%, and 1.8%, respectively.
Cement prices recorded a marginal 0.2% rise due to increased prices of Portland cement and cement adhesive, fueled by demand in government construction projects. Steel and steel product prices mirrored this increase, with the cost of metal sheets, steel sheet piles, black steel pipes, and prestressed concrete reinforcing wire rising due to higher raw material prices, including billets and scrap metal.
Mr. Nanthapong further noted that the construction materials price index is expected to continue its upward trajectory in August 2026, with geopolitical conflicts in the Middle East and Russia-Ukraine potentially causing volatility in oil and energy prices. Global copper prices remain elevated due to demand in the clean energy sector and data center construction to support artificial intelligence (AI) industry expansion, impacting electrical wire and equipment costs. Ongoing demand for construction materials in government infrastructure and public utility projects is expected to sustain the construction material price index.