Prolonged Conflict in Ukraine Could Impact Construction Costs in Thailand
The Siam Cement Pcl or Siam Cement Group (SCG) has indicated that prolonged armed conflict between Russia and Ukraine will likely affect costs in the construction sector.
Nithi Patarachoke, chairman of SCG’s board of directors, said the largest and oldest cement and building material company in Thailand and Southeast Asia has been closely following the war in Ukraine. He specifically identified rising fuel prices triggered by the war as the main factor driving up the costs of construction materials.
The chairman stressed, however, that SCG is exploring cost-cutting measures, such as solar energy, to minimize its dependency on petroleum.
Nithi also said the firm will keep a close watch on how much the war impacts energy costs, which has been a major concern for both developers and consumers.
The chairman added that SCG will determine at a later date whether or not it will request administration approval for price hikes on certain items.
Nithi noted that cost-push inflation triggered by the Black Sea conflict is extending the recovery period for the construction sector. He further concluded that if the situation continues, price hikes would be inevitable.