Prices of building materials continue to increase

Building material market in Ho Chi Minh City has seen the prices of steel, stone, cement, bricks, flooring tiles and decorating tiles increasing strongly although demand declined due to a slowdown in construction, especially civil building projects as well as key projects were less inaugurated than before.

Prices of building materials continue to increase

For instance, the price of steel rose by VND200,000-VND250,000 per ton, depending on each manufacturer. The retail price of steel roll was at nearly VND11 million per ton. The prices of steel round bars varied from VND240,000 per unit to VND320,000 per unit, depending on the diameter. Rolled steel priced from VND14.5 million to VND14.84 million per ton and steel bars cost VND14.5 million – VND15 million per ton.
The representative of the Vietnam Steel Association said that besides impact of an increase in power prices which caused steel prices to relatively increase by about 8 percent, the prices of steel ore was kept at high level so steel manufacturers have had to raise the prices of finished steel products.
It is forecasted that southern provinces will enter rainy season in the next one or two months so steel consumption is expected to continue to drop, causing more pressure on steel manufacturers. Moreover, competition in domestic market will become more intense as new steel plants will be put into operation, including Hoa Phat-Dung Quat, Tung Hoo and Nghi Son steel plants.
Besides increasing building material prices, construction labor cost this year was also adjusted comparably. Accordingly, the current rough building cost is from VND3 million to VND4 million per square meter, an increase of VND500,000 per square meter compared to last year. Meanwhile, the building cost for a complete house without installing sanitary equipment, decorating lights and other decorating steps costs from VND6 million to VND6.5 million per square meter.

By Lac Phong – Translated by Thuy Doan

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