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.

MOST VIEWED

  • Serious flooding across country

    The Kampong Speu provincial Committee for Disaster Management on Wednesday issued an alert after non-stop heavy rain caused widespread flooding. In Koh Kong province, authorities are working with the disaster committee and the Cambodian Red Cross to assist those affected after more than 350 homes were

  • CNRP points to King in call for vote boycott

    Leaders of the former Cambodia National Rescue Party (CNRP) have taken a new tack in their call for a boycott of the national elections later this month. They are now claiming that the people should follow the King, who is expected to abide by tradition

  • Actress’s NGO takes heat for promoting the ruling party

    An actress’s NGO which participated in an election campaign event contrary to the Law on Association and Non-Governmental Organisations (Lango) has been slammed. Chorn Chanleakena, a celebrity and the president of the Association of Artists Volunteering to Help Society, allegedly led its members in

  • Troop moves ‘won’t worry people’

    Senior officials at the Ministry of Defence and National Police said on Tuesday that riot training provided to the country’s police forces were aimed at preventing unexpected demonstrations and strikes before and after the July 29 national elections. The troop mobilisation, they said, would not