Building material market stable

Hanoi (VNA) - The domestic building material market was stable in the first four months of the year and continued to meet demand, said the Ministry of Construction.

The ministry said the building material planning and development programme has been implemented to ensure supply and stabilise prices, and also enable exports.

The total consumption of cement and clinker in the January-April period reached nearly 26 million tonnes, a 5 percent year-on-year increase, meeting 32 percent of the set target. Of this, total local consumption of the two building materials rose 9 percent against the same period last year to reach 20.79 million tonnes.

Cement and clinker exports totalled 5.15 million tonnes, a sharp drop from the corresponding period last year due to a Government decision that exported cement products are not eligible to enjoy input value-added tax (VAT) deduction. In addition, the product carries a 5-percent export tax.

The taxes have upped export costs by 4.5 USD per tonne of clinker and 7.5 USD per tonne of cement based on average free-on-board (FOB) prices of 30 USD and 50 USD, respectively.

From January through April, the country’s output of building glass was 63 million sq.m, 5 percent less from the same period last year. Ceramic tiles productivity was estimated at 182 million sq.m, representing a 6 percent year-on-year increase.

The production value of the building materials businesses in that period was estimated at more than 10.4 trillion VND, meeting 28 percent of the annual target.

Modest consumption

Domestic steel consumption recorded a modest year-on-year rise of 2.7 percent in April to some five million tonnes, according to the Vietnam Steel Association (VSA).

Last month, the purchase of construction steel products dropped 14 percent year-on-year to reach more than 635,000 tonnes. As of April 30, the inventory volume of construction steel stood at 720,000 tonnes, much higher than the previous month.

Consumption of steel pipes also saw a slight decrease of 5 percent to some 158,000 tonnes, the association said.

According to VSA, 6.23 million tonnes of steel, worth 3.18 billion USD, were shipped to Vietnam until April 15, marking a yearly slump of 5 percent in volume but an increase of 22 percent in value.

The association attributed the drop in the quantity of imported steel to the positive impact of Vietnam’s safeguard measures, which have resulted in local enterprises having to face less pressure from competition.

Earlier, the association predicted the local steel industry would likely enjoy 10-12 percent growth this year.

With expected GDP growth of 6.2 percent this year and the operation of 10 steel projects in 2017, the sector’s growth is expected to expand further, it said.-VNA