Why Do Construction Material Prices Fluctuate Every Week?

Prices of construction materials such as iron, cement, and PVC pipes often change quite rapidly—they can even change from week to week. These fluctuations are often confusing for contractors, project owners, and retail consumers. What is the real cause behind this price instability?

1. Global Raw Material Price Movements
The prices of steel, nickel, and other raw materials on the world market greatly affect the final price of construction materials in Indonesia. The increase in the price of iron ore on the global market, for example, will have a direct impact on final products such as reinforced concrete and H-beams.

2. Exchange Rates and Imports
Most construction materials or products in Indonesia still depend on imports. When the rupiah exchange rate against the dollar weakens, the price of imported materials will also increase, even though local production costs do not change.

3. Supply and Demand Conditions
High demand during the construction season (such as towards the end of the year or after Lebaran) can cause price spikes. Conversely, if supply is limited due to logistical constraints or extreme weather, prices can also increase due to stock shortages.

4. Government and Tax Policies
Changes in regulations, import tariffs, or export-import policies from the government also contribute to price fluctuations. For example, a ban on the export of raw materials or an adjustment to VAT rates can be directly felt in the selling price on the market.

5. Transportation and Distribution Costs
Increases in fuel prices and logistics rates will also affect the final selling price, especially for projects located outside the island or in remote locations.

Stay Updated, Stay Wise in Buying
As a trusted building materials distributor, PT Intisumber Bajasakti always strives to provide competitive prices. Our team is also ready to provide the latest price information and alternative products that suit your project needs.

📞 Contact our sales at +6221 66675999
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