Building materials demand jumps

Tuesday, Sep 08, 2015 11:20

Consumption of building materials is increasing together with the recovery of the property industry. — Photo vccinews

HCM CITY  (Biz Hub) — Together with the recovery of the HCM City property industry, consumption of building materials is also increasing.

Tran Thi Hanh, owner of a shop selling building materials in Binh Chanh District, said the number of customers buying steel, bricks, sand, and cement has doubled in recent months, and monthly revenues have risen by VND30-40 million (US$1,333-1,778) to VND100-200 million ($4,444-8,889).

Ho Van Hue, who has a delivery tricycle stationed at An Suong intersection in District 12, said there are around 20 such vehicles in the area, and each used to do one or two trips a day transporting building materials and earning VND150,000-VND200,000.

Now each does four to five trips, he said.

Sales of iron and steel and cement have met or surpassed targets.

Consumption of cement was up 9 per cent year-on-year in the first eight months at 36.02 million tonnes.

Many steel companies like Hoa Phat Group Joint Stock Company and Hoang Tung Production and Trading Co.,Ltd said sales had shot by 50 per cent in recent months.

More than 3 million tonnes of steel were sold in the first seven months, up 24 per cent year-on-year and 12 per cent higher than the target.

Le Van Toi, head of the Ministry of Construction's Building Materials Department, said the property market has warmed up recently, pushing up demand for building materials.

According to shops selling them, many kinds of materials are available in the market at a range of prices depending on brand and quality.

According to insiders, the imminent international integration is set to spark off fierce competition in the market.

The steel industry already faces blooded competition from imports from ASEAN member countries at zero duty, the Viet Nam Steel Association said.

The brick and floor tiles markets also witness intense competition between local and Chinese products. — VNS

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