The price of construction steel this month is 500,000-700,000 VND (30-43 US%) per tonne higher than in the same period last year, according to Dinh Huy Tam, secretary of the Viet Nam Steel Association.
Prices for different varieties of construction steel were currently running from about 8.55 million VND (534 US%) to 9.1million VND (568 US$) per tonne, Tam said, with prices in HCM City generally running higher than elsewhere in the nation.
One-tonne wire rods sold by Vina Kyoei in HCM City were currently priced at 8.78 million VND (548 US$).
A steel trader in HCM City predicted that the price of construction steel would continue to increase this month and prices by the end of March would exceed 10 million VND per tonne.
The leading cause for the climbing steel prices were the high cost of steel ingot imported from China, a major raw material in steel production.
"About 70% of our imported ingot is from China," said Tam. "So, when China changes its policy on ingot exports, we will be affected."
China recently increased the export tax on steel ingot from 10% to 15%, driving up prices by 500 US$ per tonne. Ingot from Russia and Japan was even more costly, at 530 US$ per tonne and 525-530 US$ per tonne, respectively.
Building costs in HCM City have been seeing a general increase, with the costs of other construction materials also going up. Cement prices have increased to 51-53,000 VND per package, a rise of about 12%. Construction brick has also gone up by 2%.
Hoang Quoc Tuan, deputy director of Dong Nai Brick and Tile Co, noted that, since the beginning of this year, his company has had to raise the prices of many types of construction materials by 3-5%.
Source: VNA
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