Cement prices increased sharply

While steel price dropped sharply, down to nearly 1 million dong/ton within the last 15 days of May, the price of cement still increased sharply.

According to the Department of Building Materials (Ministry of Construction), in May 2022, cement consumption in both domestic and export markets is estimated at 9.27 million tons, up about 3% over the same period last year. 2021. In which, domestic consumption of cement is about 5.97 million tons; exports are estimated at 3.3 million tons.

Notably, the domestic cement selling price in May increased sharply. The Ministry of Construction said that due to the impact of the increase in the prices of input materials in cement production such as gasoline, coal … all increased, so in the first quarter of 2022, cement prices have increased. Many businesses are forced to adjust the selling price of cement to the market.

In May, right from the beginning of the month, the business block of Vietnam Cement Corporation, including: Vicem Bim Son, Vicem But Son decided to increase the selling price.

Accordingly, from May 10, Vicem Bim Son announced to increase the selling price of bulk cement to 70,000 VND/ton; export prices of cement and clinker also increased by 95,000 VND/ton. Can Tho Cement, Tay Do Cement also simultaneously increased prices from 7,000 to 10,000 VND/bag.

The domestic selling price of cement in May increased by about 40,000 – 80,000 VND/ton, depending on the type and brand of cement.
Generally in the first 5 months of 2022, cement prices increased by 13.7% compared to the same period in 2021 and increased by 3% compared to the fourth quarter of 2021.

Experts in the field of construction materials said that in 2022, production costs in the cement industry will increase sharply due to increased input material prices. In which, coal is the raw material that accounts for about 30% of the cost structure for cement production, which increased sharply. According to Trading Economic data, the price of coal on May 30 was at $401/ton, up 33.76% month on month and 237.26% over the same period last year.

Gasoline prices also increased sharply due to the war conflict between Russia and Ukraine leading to scarce supply. From the beginning of the year until now, the domestic gasoline price has increased by 6,741-6,774 VND/liter, to a price of nearly 31,000 VND/liter.

The increase in input material prices caused many other construction materials to also increase sharply. In addition to cement, other construction materials such as sand, stone, and bricks all increased.

For example, in May, the price of asphalt of all kinds increased from 800-1,000 VND/kg compared to April; yellow sand increased by 20,000 VND/m3, black sand increased about 5,000 VND/m3; fired bricks increased by 500 VND/piece; construction stones such as black stone, green stone, construction gravel increased by about 10,000 VND/m3. Prices of electrical equipment such as sockets, switches, conduits… from 1/6 also increased 5% simultaneously. Prices of interior decoration items increased by about 20% compared to the beginning of April.

In order to limit the negative impacts of the current rising price of construction materials, Deputy Prime Minister Le Van Thanh recently sent a dispatch requesting agencies to urgently adjust contracts, adjust contract price due to the impact of material price fluctuations. At the same time, the Deputy Prime Minister also assigned the People’s Committees of the provinces and centrally-run cities to direct construction agencies, publicize prices and price indexes of materials according to regulations and urgently implement solutions to manage the problem. price rationalization, price stabilization building materials construction works in general and especially national key traffic projects in accordance with the provisions of law.

Gia Hung

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