Building material prices rise as transportation costs more

Monday, May 12, 2014 18:06

Vicem workers arrange cement bags. The cement corporation plans to increase prices and reorganise distribution networks to in the face of rising transportation costs. — Photo vicem.vn

HA NOI (Biz Hub) ― Prices of various building materials are increasing due to the rise in the costs of transportation, the Dau tu (Vietnam Investment Review) reported.

Most cement, iron, steel, and ceramic tile agents in Ha Noi have raised the retail prices by 5–10 per cent. Tran Thanh Dat, the director of Thanh Dat Co Ltd in Cat Linh Street, stated that he had received notices about price adjustments from producers about a week ago.

Tile and sanitaryware prices began to go up across the country late last month after nearly 100 enterprises of the Viet Nam Building Ceramic Association met to seek market adaptation.

Association chairman Dinh Quang Huy noted that, for many years, transportation firms have been trying to reduce costs by allowing vehicles to carry goods with loads double or triple the levels allowed by the law.

Now, as vehicles are being thoroughly checked by authorities for road safety, the transportation costs for every square metre of tiles have risen by 15–20 per cent.

Granite Tien Son Joint Stock Co Deputy Director Truong Ngoc Minh stated that the company will consider reasonable price increases to avoid creating significant fluctuations in the market, although many firms in the pottery and ceramic industries were taking efforts to reduce losses and break even.

A representative of Nghi Son Cement Co noted that the company had received notice from a transporter that the delivery costs have doubled from VND250,000–300,000 (US$11.90–14.28) to VND600,000 (US$28.56) per tonne, so it was likely that the firm will increase the cement prices in the future.

The Viet Nam Cement Industry Corporation (Vicem) will discuss plans to increase prices and reorganise distribution networks with member companies this month to assure their interests, stated the corporation's office chief Nguyen Thanh Tung.

Vicem will also study how to maximise efficiency for different modes of transportation, including railway and waterway, he added. ― VNS

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