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War in Ukraine sends construction material prices in Thailand soaring


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The Russian invasion of and subsequent war in Ukraine are driving up the prices of construction materials in Thailand, especially iron rod and steel products, the prices of which have already increased 35% year on year, according to the Real Estate Information Center (REIC) of the Government Housing Bank.

 

Russia and Ukraine are the world’s major sources of iron and iron ore. Their combined steel production accounts for 14% of global exports. Russia is the world’s third largest exporter of steel products, after China and Japan, while Ukraine is the world’s 8th largest.

 

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The price index for the construction of a standard home unit in the first quarter of this year is 129.8 points, up 5.3% year on year, or 3.9% up from the fourth quarter of last year.

 

Full story: https://www.thaipbsworld.com/war-in-ukraine-sends-construction-material-prices-in-thailand-soaring/

 

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16 minutes ago, wombat said:

With the iron ore China buys from Australia why are the steel products not coming from China?

China is only a rail link away.

The top five Imported steel suppliers to Thailand is coming from China , Japan , South Korea , Taiwan and Russia . 

The war in Europe affects the world market for many products .

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So what about prixes more soaring when this war should be ended and this country go become start a general rebuilding ....the next excuse for price expkosion ....

Any excuse is always present for rising prices....

Edited by david555
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3 hours ago, hotchilli said:

So source your material from the remaining 86%.

They probably do and that is why the price goes up. 

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3 hours ago, wombat said:

With the iron ore China buys from Australia why are the steel products not coming from China?

China is only a rail link away.

This statement from the OP seems to be just a statement to cover their greed.

Most, if not all Steel used in Thailand will come from China, ( who by the way are the Worlds largest producer by a long way )

A price rise of 3.9 % Y on Y would seem to suggest that the prices are extortionate.

For that kind of price rise in the Construction of a House in Thailand, at least 25 % of the total quantity ( by cost ) of the materials used would have to be Steel.

If the Builders I have seen locally are anything to go by, they are reducing the amount of steel used in the Construction to reduce their costs and increase profit margins.

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36 minutes ago, Cake Monster said:

This statement from the OP seems to be just a statement to cover their greed.

Most, if not all Steel used in Thailand will come from China, ( who by the way are the Worlds largest producer by a long way )

A price rise of 3.9 % Y on Y would seem to suggest that the prices are extortionate.

For that kind of price rise in the Construction of a House in Thailand, at least 25 % of the total quantity ( by cost ) of the materials used would have to be Steel.

If the Builders I have seen locally are anything to go by, they are reducing the amount of steel used in the Construction to reduce their costs and increase profit margins.

 

No, it seems japan is the biggest source of Steel. 

 

"If the Builders I have seen locally are anything to go by, they are reducing the amount of steel used in the Construction to reduce their costs and increase profit margins."

 

Only a fool would allow that, builders have to follow the bill of quantity they signed off on, everything else is a scam. 

 

 

 

Screen Shot 2022-04-21 at 11.25.23.png

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4 hours ago, blazes said:

Ukraine will be the go-to excuse for all kinds of "inflation" rip-offs in the coming year or two.

And they use that excuse everywhere in the world.

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5 hours ago, hotchilli said:

So source your material from the remaining 86%.

It's just too hard for them to switch suppliers besides why would they buy these products from countries that are very close to Thailand when they could spend the extra money on freight and buy them from Russia or the Ukraine?

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9 hours ago, webfact said:

driving up the prices of construction materials in Thailand,

Music to the ears of Anutin and Sino-Thai?????

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2 hours ago, Cake Monster said:

This statement from the OP seems to be just a statement to cover their greed.

Most, if not all Steel used in Thailand will come from China, ( who by the way are the Worlds largest producer by a long way )

A price rise of 3.9 % Y on Y would seem to suggest that the prices are extortionate.

For that kind of price rise in the Construction of a House in Thailand, at least 25 % of the total quantity ( by cost ) of the materials used would have to be Steel.

If the Builders I have seen locally are anything to go by, they are reducing the amount of steel used in the Construction to reduce their costs and increase profit margins.

I am receiving and reviewing current house bid estimates. "Precision steel" and "roofing structure" material costs are coming in at 1-1.1M baht. Total material costs of 4.3M baht, so yes, 25%. 

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15 hours ago, blazes said:

Ukraine will be the go-to excuse for all kinds of "inflation" rip-offs in the coming year or two.

So true.  
 

Just a year ago, the global steel surplus was supposedly a cause for concern.  

  • Global steel markets are plagued by chronic excess capacity. Measured by the Organisation for Economic Co-operation and Development (OECD), global excess capacity is 5.8 times the productive capacity of the entire U.S. steel industry. Massive overcapacity driven by subsidies and other anti-competitive policies can only be disposed of by these producers flooding U.S. and other markets with exports, posing material harm to U.S. steel producers and risking the U.S. industry’s ability to maintain operations, grow, and invest in areas essential to national defense, critical infrastructure, and broader economic welfare.

https://www.epi.org/publication/why-global-steel-surpluses-warrant-u-s-section-232-import-measures/


 

Russia and Ukraine combined produce only 5% of the worlds steel.  Yeah…that warrants a 25% increase in costs.  *$&&# scam.

 

https://en.wikipedia.org/wiki/List_of_countries_by_steel_production

Edited by Airalee
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Global prices are not increasing because of the war. No honest economist would state such nonsense. Global economy is predicated oil production which has been restrained by the dysfunctional US presidency followed by idiotic decision making that has caused much disparity, increasing prices and inflation globally.

 

if anyone wants to debunk the facts then have at it. Let’s set back watch and see how effective the propaganda is…

Edited by novacova
Because I’m not a [email protected]?d
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15 minutes ago, novacova said:

Global prices are not increasing because of the war. No honest economist would state such nonsense. Global economy is predicated oil production which has been restrained by the dysfunctional US presidency followed by idiotic decision making that has caused much disparity, increasing prices and inflation.

 

if anyone wants to debunk the facts then have at it. Let’s set back watch and see how effective the propaganda is…

Correct and the Elite and wealthy families are continuing to screw the populous to drain them of as much money as possible because the writing is on the wall that these people will shortly be unwanted  by  Thailand's masses. So they are getting as much money stashed overseas as possible for that eventuality. Prices in places such as Makro and CP were rising far greater then inflation way before covid and the Ukraine crisis.  Check out the world price for steel , it does not support the government lies. In fact re-bar is trading at less in the last six months then it was in the six months prior to that hence the price should have gone down. Basically they are just extortionists but with the military and others supporting them, currently anyway.

https://tradingeconomics.com/commodity/steel

Edited by Excel
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On 4/21/2022 at 7:08 AM, blazes said:

Ukraine will be the go-to excuse for all kinds of "inflation" rip-offs in the coming year or two.

The girls will be putting up their prices, "well it's the war in Ukraine".

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10 hours ago, RandiRona said:

And I thought only Sticky Rice and Mango was getting expensive...which begs the question...Who is eating Steel!!!

Superman..man of steel,  bluddy  Aliens  again

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19 hours ago, Silencer said:

I am receiving and reviewing current house bid estimates. "Precision steel" and "roofing structure" material costs are coming in at 1-1.1M baht. Total material costs of 4.3M baht, so yes, 25%. 

Curious, how big is this house? 25% price increase in materials is devastating. 

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1 hour ago, NorthernRyland said:

Curious, how big is this house? 25% price increase in materials is devastating. 

The 25% represents that steel material costs are 25% of the total material costs. I don't know what the price increase is from say 6-12 months ago but do know it has gone way up due to Covid supply chain issues and now the war. House is one level 185m2, plus pool and parking garage.

 

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