Although the market is the construction season, the level of competition force enterprises (companies) must be carefully calculated decision to raise prices, the "whirlwind" building material prices have now property, not a business that could bystander.
From April 2.2011, Vietnam Cement Industries Company In field (VICEM) are allowed to adjust the price of cement increased by 60,000 VND per ton. But Vietnam Steel Association (VSA), also candidly stated: Increase the price of steel is that companies compete by doing, just look different, but can not increase as world prices rise beyond the tolerance of DN in water.
| 60.000dong/tan cement increased. Photo: VNA |
Input price increase
Many companies have adjusted the price of cement increased with increasing input signal. The selling price of cement at the plant is at 960.000d - 1.4 million per ton depending on type and depending on the region. Representing Vietnam Cement Association confirmed that this price adjustment equivalent to about
5-6% is acceptable and will not greatly affect the market. Representatives of several businesses, said before the Lunar New Year, the price of coal sold to cement producers rose more than 2 times the previous price of electricity, gasoline and some types of supplies for production fluctuations team was made up of cement prices. Calculation, the raw material for production has increased about 1.5 times, while prices of cement to the quarter from first quarter 2008 increased approximately 15% new IV/2010. By the cement market has to balance supply - excess demand in the country and, should the company want to increase the price, is not.
An official Department of Building Materials (Ministry of Construction) admit, this year's supply of cement is capable of up to 55 million tons, up about 4 million tons from last year, but prices are very competitive, because the DN do not want market share fell to rival. This can only benefit consumers. Last year, as prices have not increased this year, but the stock market was 2.2 million tons of cement and clinker.The important thing is out of this, VICEM own stock to 1.6 million tons. Therefore, prices move up 60.000d/tan can say is that degree of caution, taking into account the tolerance of the market and partly offset the losses due to input price increases.
Similarly, the "fever" of steel companies is explained by world price spike. According to the Vietnam Steel Association Chairman Pham Chi Cuong 'import price of steel reached 685-690USD/tan world. Even the iron and steel scrap, raw materials imported for domestic production of embryos also increased 560USD/tan; therefore, calculate the price of imported steel scrap plus a shipping fee was around 15 million tonne. Since then, the price a ton of finished steel products produced in the country had reached 16 to 16.5 million tons (sold at the factory). This was not the difference in dollar exchange rates when companies have to purchase at market price up to 21.500d/USD freedom to contract payments for imported raw materials. "
Pinned difficult to price?
Surveys in some building materials stores in Hanoi on 10.2, construction steel prices are now in season should start moving up significantly. According to shop owners on the road De La Thanh, Lang and some steel sole agent of Thai Nguyen Iron and Steel Company, the Company Vietnam - Italy Steel ..., prices of construction steel are common at around 17 million per ton. Meanwhile, the U.S. Steel Company In field site (VNSteel), steel prices of Southern Steel Company has been listed at 14.95 million tonne steel coils with non-6, 8 and non-shaped steel bar. However, the purchasing power of the market did not decrease. Information from VNSteel (headquarters south) also said that this unit has increased steel prices to adjust more 400.000d/tan for both steel and rolled steel. Accordingly, the price of steel products for delivery at the factory of VNSteel at 16.467 million tonne steel plant 16.797 million per ton. This shows that steel prices will set a new price even in February, while the purchasing power did not decrease.
Mr Cuong said, because demand for steel in the world through bleak period is up, it forecast in early March next, the steel market will be hard to reduce the heat. Increase sharply, about 300,000 - 500.000d/tan depending entirely on raw material prices as well as the consumer. With cement products, business forecasts, the market will continue to "hot", but the growth rate will be contained.
Many companies have adjusted the price of cement increased with increasing input signal. The selling price of cement at the plant is at 960.000d - 1.4 million per ton depending on type and depending on the region. Representing Vietnam Cement Association confirmed that this price adjustment equivalent to about
5-6% is acceptable and will not greatly affect the market. Representatives of several businesses, said before the Lunar New Year, the price of coal sold to cement producers rose more than 2 times the previous price of electricity, gasoline and some types of supplies for production fluctuations team was made up of cement prices. Calculation, the raw material for production has increased about 1.5 times, while prices of cement to the quarter from first quarter 2008 increased approximately 15% new IV/2010. By the cement market has to balance supply - excess demand in the country and, should the company want to increase the price, is not.
An official Department of Building Materials (Ministry of Construction) admit, this year's supply of cement is capable of up to 55 million tons, up about 4 million tons from last year, but prices are very competitive, because the DN do not want market share fell to rival. This can only benefit consumers. Last year, as prices have not increased this year, but the stock market was 2.2 million tons of cement and clinker.The important thing is out of this, VICEM own stock to 1.6 million tons. Therefore, prices move up 60.000d/tan can say is that degree of caution, taking into account the tolerance of the market and partly offset the losses due to input price increases.
Similarly, the "fever" of steel companies is explained by world price spike. According to the Vietnam Steel Association Chairman Pham Chi Cuong 'import price of steel reached 685-690USD/tan world. Even the iron and steel scrap, raw materials imported for domestic production of embryos also increased 560USD/tan; therefore, calculate the price of imported steel scrap plus a shipping fee was around 15 million tonne. Since then, the price a ton of finished steel products produced in the country had reached 16 to 16.5 million tons (sold at the factory). This was not the difference in dollar exchange rates when companies have to purchase at market price up to 21.500d/USD freedom to contract payments for imported raw materials. "
Pinned difficult to price?
Surveys in some building materials stores in Hanoi on 10.2, construction steel prices are now in season should start moving up significantly. According to shop owners on the road De La Thanh, Lang and some steel sole agent of Thai Nguyen Iron and Steel Company, the Company Vietnam - Italy Steel ..., prices of construction steel are common at around 17 million per ton. Meanwhile, the U.S. Steel Company In field site (VNSteel), steel prices of Southern Steel Company has been listed at 14.95 million tonne steel coils with non-6, 8 and non-shaped steel bar. However, the purchasing power of the market did not decrease. Information from VNSteel (headquarters south) also said that this unit has increased steel prices to adjust more 400.000d/tan for both steel and rolled steel. Accordingly, the price of steel products for delivery at the factory of VNSteel at 16.467 million tonne steel plant 16.797 million per ton. This shows that steel prices will set a new price even in February, while the purchasing power did not decrease.
Mr Cuong said, because demand for steel in the world through bleak period is up, it forecast in early March next, the steel market will be hard to reduce the heat. Increase sharply, about 300,000 - 500.000d/tan depending entirely on raw material prices as well as the consumer. With cement products, business forecasts, the market will continue to "hot", but the growth rate will be contained.
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