Construction materials compete to increase prices

Accordingly, construction steel of type 10 increased to 17.6-17.8 million VND/ton; type 12 increased to 17.29-17.49 million VND/ton. In the Southern region, Pomina steel price also increased by 810,000 VND/ton, to 17.08-17.49 million VND/ton, depending on the type.

Construction steel of other brands such as Vina Kyoei and Southern Steel also exceeds 16 million VND/ton. Specifically, Vina Kyoei steel and Southern Steel, type 10, have the same selling price of 16.24-16.44 million VND/ton.

With the above prices being sold at factories, the retail price at stores will be increased by several million VND/ton, mainly due to transportation costs from the factory to the place of consumption. Specifically, the retail price of Vina Kyoei and Southern Steel has currently exceeded 18.2 million VND/ton, the steel price of other brands is from 17-17.5 million VND/ton. Pomina's steel price alone is nearly 19 million VND/ton.

Mr. Nghiem Xuan Da, Chairman of the Vietnam Steel Association, said that the reason why construction steel prices have continuously increased since the beginning of the year is because most input costs have increased, of which raw material prices have increased by about 20%. Not to mention that the upcoming electricity price is also likely to increase, which will increase steel production costs as well.

In addition to the sharp increase in steel prices, other items such as cement, sand, and stone have also increased significantly. For example, cement prices have just been adjusted by companies to increase by 5,000-10,000 VND/bag to 100,000 VND/bag. Sand and stone have also just increased by tens of thousands of VND/m3, to 350,000-450,000 VND/m3, depending on the type, construction bricks have increased by 100 VND/piece to 1,400-1,600 VND/piece.

Construction steel has increased continuously since the beginning of the year. Photo: Nguyen Hai

Mr. Dang Van Duong - owner of Phat Gia Hoang building materials store in Thu Duc, Ho Chi Minh City - said that the purchasing power of building materials is quite slow, there are almost no customers from large projects, only individual customers buying sporadically for home repairs. In the near future, some cement companies will continue to increase prices, including one cement company that has announced a price increase of 7,000 VND/bag from the beginning of March. According to Mr. Duong, steel prices will continue to fluctuate in the near future because almost every week there are companies announcing price increases.

Slow consumption of construction materials but prices continue to increase will somewhat affect construction costs. However, because the real estate market has not shown signs of recovery, there are almost no large projects, so in reality, there is little impact.

Engineer Nguyen Thanh Danh, SG Urban Development Construction Company, said that the current construction force is very abundant, even those working on large projects have jumped outside to work because no construction has started while there are too few customers. Because there are too many construction contractors leading to great competition, even though the price of all construction materials increases, the construction price remains the same, cannot increase, if the price increases, it will lose customers.

According to Mr. Danh, the price of raw construction is still the same as last year, about 3.5-3.8 million VND/m2 (the construction contractor covers the labor and materials). This year, due to competition, the construction contractor covers the finishing work such as plastering, tiling, lining, and installation of interior equipment (materials purchased by the homeowner).

Source: https://nld.com.vn/kinh-te/vat-lieu-xay-dung-dua-nhau-tang-gia-20230227221032938.htm