Construction steel prices in Nghe An skyrocket
(Baonghean.vn) - At the end of the year, the price of steel and some other construction materials skyrocketed, forcing many investors and households to increase their investment in construction projects.
Surveying a number of steel businesses, we learned that in just the past month, from the time of the December 2020 price quote to the January 2021 price quote, the price of steel bars with diameter 10 increased by 20,000 VND/bar, from 82,000 VND to 104,000 VND/bar, depending on the type. Steel bars with diameter 16 increased by more than 50,000 VND/bar. Steel bars with diameter 25 increased from 569,000 VND to 582,000 VND/bar, to 694,000 VND to 711,000 VND/bar, which is an increase of more than 120,000 VND/bar, depending on the steel brand.
For the whole year of 2020, steel prices increased from 50,000 VND to more than 200,000 VND/tree, depending on size and manufacturer.
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| Since the beginning of the year, steel prices have been continuously adjusted upward. Photo: Tien Dong |
According to calculations, if each family has a construction floor area of 100m2, using up about 200 bars of 10mm diameter; 150 bars of 16mm diameter; 70 bars of 18mm diameter, not including bars of 6mm diameter and other types of steel, the cost will increase due tosteel price increaseis more than 10 million VND per floor. For large construction projects, such as building high-rise apartments, hotels... with large floor areas, each floor construction cost increases due to increased steel prices up to hundreds of millions of VND.
An owner of a steel business in Vinh City said that since the beginning of 2020, steel prices have been continuously increasing, updated monthly, sometimes daily. The reason for this, according to Ms. Na, is that all companies reported that input material prices had increased, so they were forced to adjust their selling prices. Although she knew that customers would be the ones to suffer, this was unavoidable.
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| Steel prices have increased across all dealers according to the listed prices of the manufacturing company to avoid unfair competition and market dumping. Photo: Tien Dong |
A manager of a steel warehouse in Hung Nguyen district added: Although the agents have reduced the discount rate and cut some transportation costs due to the decrease in gasoline prices; however, despite implementing many different methods, the steel price has not been reduced. In fact, the steel price sold to customers has been listed by the companies, so even in different locations, they have the same price, to avoid market dumping and unfair competition.
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| Although in 2020, transportation fares decreased following gasoline prices, steel prices continued to increase sharply. Photo: Tien Dong |
Not only the price of iron and construction steel, the price of roofing sheets also increased in the last months of the year. Depending on the type of sheet such as stainless steel plate, durable paint or foam sheet, the price increased from 20,000 VND to 25,000 VND/m2 in the last months of the year, ranging from 103,000 VND to 230,000 VND/m2.
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| The price of corrugated iron does not fluctuate as much as the price of steel, but it also increases from 20,000 to 25,000 VND/m2 depending on the type. Photo: Tien Dong |
The skyrocketing price of steel has put many households with unfinished construction projects in a dilemma. They are forced to continue buying steel to complete their projects. If they accept to wait for the price of steel to change, it is not certain that the price will decrease, but it will slow down the progress.
Mr. Tran Van Tien, who is currently building a house in Trung Do ward (Vinh city), said that his family started building the house in September 2020. From the time the foundation was laid to the completion of the third floor, the price of steel increased 4-5 times. If we calculate the total cost, the steel alone increased by more than 50 million VND compared to the estimate.
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| The high price of steel has forced many households to continue building their houses, even though their capital has increased, otherwise the project will not be on schedule. Photo: Tien Dong |
Especially for thebig project, due to the high price of steel, the total investment will increase many times. This will directly affect investors, forcing them to carry out procedures to adjust the total amount, or to find solutions to reduce it.
