Costs of construction materials plummet

Work is under way on the New Sai Gon Project in HCM City. The prices of construction materials have recently declined sharply. — VNA/VNS Photo Van Khanh

HCM CITY — Prices of building materials have fallen sharply recently, sales remain depressed.

Steel prices have halved from a record high of VND21.5 million (US$1,313) per tonne in July, after the price of imported steel ingots fell from $950 to $540 at the end of October.

But, the Viet Nam Steel Association (VSA) said steel sales have slumped by 66 per cent in the last four months.

Cement retailers, too, have seen stocks piling up and are offering a discount of VND1,000-2,000 for a bag of 50kg that costs around VND70,000.

Nguyen Minh Thanh, a retailer on Ly Thuong Kiet Street in HCM City, said he used to sell at least 100 bags of cement every week a few months ago, but sales had fallen to 30-50 bags last month.

The prices of bricks, sand and macadam have all fallen 10 per cent.

Luong Thi Hang Nga, public relations manager of Thien Thanh Building Material and Interior Decoration Center, said the sluggish property market and the cutting off of credit by banks had dissuaded builders from launching new projects.

Dinh Huy Tam, general secretary of the VSA, said the rains had also been blamed for the slowing construction work.

Building-material suppliers said they would have to send marketing staff to construction sites to offer discounts to promote sales. —