Sales of building materials drop due to slow house purchase

BANGKOK: -- Total sales of building materials have dropped due to a slow purchase of houses by consumers concerned with the economic slowdown, according to industry executives.

Viroj Apiwattanalangkarn, president of Boonthavorn Ceramic Co, said home furnishing materials began to experience an oversupply since consumers had slowed their purchase of houses.

Still, he hoped Thais would turn to repair and maintain their houses rather than buying new ones.

He projected the overall market would slow down along with the economic sluggishness this year.

Entrepreneurs need to adjust strategies by trying to the utmost to keep their customer base and manage costs and spending efficiently until the general election is held.

Malee Thayanuwat, project sale director of Grand Homemart Co, said more tiles from China penetrated into the Thai market.

Since Chinese tiles are of good quality and cheaper, local tile producers need to improve the product quality and keep up with European product fashion for competitiveness.

--TNA 2007-05-02

Sales volumes may decrease but prices almost certainly will not - I cannot think of any commodity that ever decreases in price in Thailand.

With the strong baht imports are cheaper and that is good for consumers as it will lead to more competition in the thai market. Both prices and quality should reflect that. But long term with higher input costs (e.g oil) and the thai domestic producers operating in a oligopoly and collusive one at that, don't expect prices to fall too much but to remain contant or even rise later on.

Si Nam