Iran and the United States has had a direct and significant transmission effect on El Salvador's construction industry. The sharp rise in international oil prices has forced local suppliers to raise the price of core building materials, generally by 15% to 20%. This price fluctuation affects both public works and private development projects, which makes the industry deeply worried about the cost trend in the next few months. Jose Velasquez, president of the Salvadoran Chamber of Construction, told the Economist that the price rise on the supplier side has become an established fact, although there is still a lack of official average price data that can fully quantify the impact, but information from the production line shows that the direct price increase on the factory side has not yet been included in the cost of international freight, if geopolitical tensions persist. Overall cost pressures are likely to intensify.
Among all kinds of building materials, the rising price of asphalt is particularly prominent.
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