Construction materials: demands decline but price increases

The demand for construction materials has declined by 20-30 percent. In fact, there were many construction sites that halted the construction works because of rainy season. However, the prices of construction materials such as steel, cement have increased.

At present, the steel price in the market stood at 14.4-14.8 million dong per tonne, up 1.5 million dong in comparison with that of July.

Previously, the steel mills of Pomina, VNSteel and Vina Kyoei have announced to raise the steel price by 100,000-300,000 dong per tonne, pushing up the sales price of steel products to be delivered at the steel mills to 13.6 million dong per tonne (VAT exclusive).

According to the Vietnam Steel Association (VSA), the main reason of increasing steel price was the sharp soar in prices of the world steel billet and waste steel in the past two years to $600-620 per tonne and $420-430 per tonne respectively. Another reason was that the US dollar has raised 500 dong per US dollar in the past two months. The association predicted that the steel consumption in August may decline to 350,000 tonnes, down 10,000-40,000 dong against the previous month.

The reports released by Ministry of Construction, the country’s cement consumption in July dropped sharply by 800,000 tonnes in comparison with that of June. However, in the past few days, the cement price at construction material shops stood at 70,000 dong per package, about 1,000-2,000 dong per package against the peak time. – Saigon Giai phong

Tags: Vietnam Construction, Vietnam construction material industry

Posted by VBN on Aug 25 2010. Filed under Construction. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry