Cost hike of imported materials and fuel is urging construction material makers to raise the price of their products. The manufacturers’ move to increase the price due to prolonged decline of the yen may influence the overall cost of construction.

Asahi Glass Co, Japan’s largest glass maker, raised the price of glasses for domestic building construction by 10-20% in September, followed by other glass makers including YKK AP and LIXIL taking the same action. LIXIL also announced the price increase of its other products such as doors, flooring materials and sanitary wares by 2-15% in November, while Daiken Corp. is considering following the same trades citing material hike.

Cement makers are keeping the same price level because of coal price fall offsetting weak Yen. Meanwhile, dealers of asphalt that is made of petroleum and prone to fluctuation announced that they increased the price of asphalt by 5,000 yen per ton in July-September.

The yen hit as low as 109 yen against US dollar in September, falling from 78 yen in November 2012. As food and daily wares prices have already been raised since this summer, construction industry is not exceptional to this trend. There is a fear that the weaker yen can make a further influence on construction cost. (2014/09/30)