Rising Raw Material Costs and Supply Shortages... Cement, Windows, and Other Building Materials See Consecutive Price Increases

PVC Window Prices Up 10% Since Last Month Due to Oil Price Hike, Artificial Stone and Flooring Also Expected to Rise
Waste Paint to Increase 5-20% Next Month, Cement Price Hike Official Soon After Stalled Negotiations

Major domestic window companies such as LG Hausys, KCC, and Hyundai L&C raised the average price of PVC windows by 10% from late March to early April.
[Photo by Asia Economy DB]

[Asia Economy Reporter Kim Jong-hwa] Following the increase in paint prices, prices of various building materials such as cement and window frames are also rising one after another.

According to the building materials industry on the 22nd, major domestic building materials companies such as LG Hausys, KCC, Hyundai L&C, and Dongwha Enterprise raised window frame prices by about 10% from last month to early this month, and plan to increase prices of key materials used in residential buildings in May.

Building materials are divided into residential (apartments, houses, etc.) and non-residential (offices, schools, hospitals, etc.) materials. Residential materials are mostly made from PVC, a petrochemical compound, used for finishing exteriors with window frames and using high-quality flooring for houses or apartments. Non-residential materials are used in office buildings, etc., where exteriors are finished with glass or steel, including gypsum boards and ceiling materials.

With remodeling demand for apartments and houses still strong, price increases for kitchen artificial stone and flooring materials such as laminate flooring are inevitable. The three companies leading the global artificial stone market?LG Hausys, Hyundai L&C, and Lotte Chemical?are currently weighing the extent and timing of price hikes.

Dongwha Enterprise is considering price increases for laminate flooring and other PVC and wood-based flooring materials. This is due to the explosive demand in the US and Australian housing markets caused by COVID-19, and the prolonged rainy seasons in Indonesia and Malaysia, major timber import countries, which have caused plywood production timber prices to rise 2 to 3 times compared to the previous year.

An industry official said, "Due to the rise in oil prices, window frames made of PVC, a petrochemical compound, have already seen price increases from late March to early April," adding, "Prices of PVC-based raw materials such as resin and surface sheets used for flooring have doubled, and with timber shortages, price increases for artificial stone and flooring materials in May are unavoidable."

Paint prices are also expected to rise by about 5-20% as early as May. A coating industry official stated, "We are adjusting the extent and timing of price increases for each product due to rising international raw material prices," adding, "Price increases for eco-friendly water-based paints commonly used in households will be lower, but commercial products containing a lot of epoxy resin will inevitably see at least a 20% increase."

Cement price increases are also expected to be formalized soon. Although cement companies notified the ready-mixed concrete industry of price hikes at the end of last year, negotiations made little progress due to opposition from the ready-mixed concrete industry. However, the recent cement shortage situation has completely shifted the mood toward price increases.

A cement industry official said, "Following the recent supply shortage, some ready-mixed concrete companies have started trading at the increased prices," adding, "We expect all companies to accept the price increase soon."