Price of construction material increases

Due to the increasing trend in almost all the commodities in the market, the construction material market remained quiet at present.

An owner of a construction material shop in Hoang Quoc Viet St, Hanoi said that in the recent time, the price of almost all the construction materials has surged. However, due to low buying power, the sales prices for these products only increase sharply.

Le Van Toi, head of department of construction material, under ministry of construction revealed that the petroleum and electricity price has climbed up, together with the prices of input materials for the production process. Therefore, it was understandable that the sales price for these products kept increasing.

As for cement products, in the first two months of this year, the consumption volume for this product group was posted at 6.2 million tonnes, much lower than the same period last year of 7 million tonnes, Nguyen Van Diep, vice head of the Vietnam Cement Association said.

In fact, in early February, some cement producers have raised the cement price by 60,000 dong per tonne to 900,000 dong – 1.36 million dong per tonne.

In the coming time, when the coal price for cement production purpose continues rising, the sales price of cement products will enter another price-hiking period.

The construction glass products shared the same situation. Due to considerable surge in electricity price and petroleum price, the producers have officially adjusted to increase the sales price for this group of products by 15-17 percent in early March, Tran Quang Thai, chair of Vietnam Association of Glass Manufacturers said.

From March 1, 2011, the steel manufacturing firms also announced to raise the steel price by 300,000-500,000 dong per tonne. The steel delivery price in the northern region was estimated at 17 million dong per tonne, and in southern region of 18-18.5 million dong per tonne. The steel price offered to the consumers would be posted at about 20 million dong per tonne.

Nguyen Tien Nghi, vice chair of Vietnam Steel Assiociation (VSA) said that the steel sales volume would continue retaining at high level of 400,000 tonnes in March because many customers are worried about the increasing trend of steel price and continue to purchase in for storage purposes.

Last February, the steel consumption volume was posted at about 400,000 tonnes, but declining by 69,000 tonnes against the previous month.  - TBKTVN

Tags: construction material