The price of cement continued to slip early this week. Steel prices have recovered and have increased rapidly during the last two days.
The price of the two most popular brands of cement sold in the city, Ha Tien 1 and Holcim, dropped by VND2,000-5,000 per bag. The retail price is VND72,000 (US$4.30) per bag. Cement delivered to a construction site sells for VND70,000 (US$4.25) per bag.
Hoang Mai, Hoang Thach, Cam Pha cement sell for VND2,000-3,000 per bag less.
According to the Marketing Department of the Ha Tien 1 Cement Joint Stock Company, the wholesale price for cement is VND60,000 (US$3.60) per bag for a level-1- distributor, so the retail price should be no more than VND72,000 (US$4.3) per bag.
Construction companies, who were quite happy when steel prices fell to VND16-16.2 million (US$970) per ton last week, are now surprised by the sudden increase. Prices have increased by VND200,000-300,000 (US$12.15-18.24) per ton.
Within the last two days, many steel manufacturers announced higher prices. In particular, the Vina Kyoei steel and Pomina are listed at retailers as offering steel at prices of VND17.5-17.7 million (US$940) per ton.
Mr. Pham Chi Cuong, chairman of the Viet Nam Steel Association, blamed this increase on the rise of the dollar in the unofficial market. An additional factor is that steel manufacturers have recently imported the steel ingot for US$1,140-1,149 per ton, about US$140-149 higher than before. Therefore, the manufacturers had to increase their selling price so they did not sell at a loss.
In other news, several steel manufacturers imported steel ingots had to re-export immediately due to failure to pay customs fees.
Dinh Vu, Van Loi, and Hung Yen signed contracts to re-export 60,000 tons of just-arrived steel in May. The export price is about US$900 per ton when all fees are included. In early June, other manufacturers also exported their just-arrival steel, including Cuu Long Steel (20,000 tons), Nguyen Minh (25,000 tons), and Thien Phu Ltd. Company (10,000 tons).
Ms. Nguyen Thi Hong, chairwoman of the Ho Chi Minh City People’s Committee, proposed that steel manufacturers be paid a subsidy to prevent exports.
