Construction Materials Hit 44-Month High as Middle East Tensions Drive Costs Soaring
Construction material prices hit a 44-month high in April 2025, driven by Middle East tensions that spiked oil and energy costs across steel, cement, and concrete categories. Prices are expected to remain elevated through May as regional co
Construction material prices have reached their highest level in 44 months, according to Nanthapong Jiralertpongse, director of the Office of Trade and Strategic Policy. The construction materials price index for April 2025 equaled 112.4 compared to April 2024, marking a 5.9% increase and the highest level in 44 months. The spike is a direct result of the prolonged Middle East conflict, which has driven up oil and energy prices, disrupting production and logistics chains for construction materials across nearly all categories.
Wood and wood products rose 1.0% due to increased costs for lumber, framing materials, doors, and windows, driven by higher raw material costs and transportation expenses tied to oil prices. The cement category increased 2.8% from rising Portland cement, blended cement, and ready-mix cement prices as energy costs surged from coal and natural gas, reflecting the energy-intensive nature of cement production. Concrete products jumped 5.6% due to increases in precast concrete slabs, beams, and ready-mix concrete as raw material and transportation costs climbed.
Steel and steel products rose 6.2% from higher prices for deformed steel bars, smooth steel bars, black steel pipes, and sheet piles, driven by increased raw material, energy, and shipping costs exacerbated by the Middle East tensions. Tile products increased 1.3% from rising prices for concrete roof tiles, transparent roofing sheets, and glazed floor tiles due to higher natural gas and raw material costs. Finishing materials climbed 0.7% as oil-based paint, acrylic paint, and interior and exterior coatings tracked higher petrochemical and solvent costs.
Sanitary ware was the sole category to decline, dropping 1.2% as ceramic basins, toilet bowls, and paper holders fell with the slowdown in the real estate sector, which faced stricter credit approval policies and high inventory levels. Electrical and plumbing equipment rose 4.9% from increased prices for THW cables, NYY power cables, VCT electrical wires, and street lights as copper, aluminum, and plastic pellet costs increased, alongside growing demand from government infrastructure projects. Other construction materials surged 15.8% largely due to rubber asphalt, a crude oil derivative, which spiked sharply as global crude oil prices and supply remained tight.
May 2025 construction material prices are expected to remain elevated compared to the same period last year due to the continuing Middle East conflict and high uncertainty from the Strait of Hormuz blockade. U.S. naval blockades aimed at pressuring Iran persist, and despite negotiation attempts, both sides have failed to reach agreement. This uncertainty continues to fuel volatile and rising oil and energy prices globally, driving up raw material and transportation costs for many construction materials, particularly those requiring high heat in production such as steel and cement.