Rise in construction material prices

Rise in construction material prices

Construction material prices increased through 2011 as growing building activity spread through the sector, suppliers told the Post this week.

Material supplier Tyro Co Director Chhim Maocharo said a batch of 10,000 bricks was selling at about US$480, up 29 per cent from $370 in the same period last year.

“Demand for materials rose last year as the industry’s recovery continued and new projects started,” she said, adding that she expects prices to rise through 2012.

The price of steel also increased over the last year, with one tonne selling at $680, up 17.6 per cent from $800 in January 2011, while cement prices rose almost 20 per cent to about $100, Chhim Maocharo said.

Some suppliers believe that the growing cost of petroleum and labour has affected material prices.

“In January last year, I sold 10,000 bricks to a middleman for $320, but now I sell the same amount for $410 without transportation. However, with transportation the cost rises further to $480 per batch,” said Preap Koy, owner of Brick Kiln Co and former president of Prek Anhanh Kiln Association told the Post.

He added that prices were still low compared to the heights of mid-2008, when 10,000 brick batches sold for up to $1,300.

However, project developers said that the rising prices have led to reassessments of house prices.

Pin Saravuth, managing director of Dangkao district-based Borey PrinceTown City development said that the company orders more than 300 tonnes of metal and cement, and 30,000 bricks each month.

“We increase the price of our houses based on the construction material market, which affects us because we lose demand,” he said.

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