The survey of the reporter of Construction e-newspaper showed that the average price of construction steel in the first quarter of 2021 ranged from VND 15,000-16,000 / kg, recording the highest level in the past 5 years. This has led to an increase in the construction price index of works, leading to the dilemma of a series of signed construction contracts, a series of projects preparing to bid ... It is time for the house management agencies. The competent country must speak up and take action so that investors and construction contractors have peace of mind to carry out the work; especially for projects using public investment.
The price increase helps the Steel industry to benefit in terms of prices, but businesses that use steel as production materials or construction contractors fall into the "fidgety" situation.
Steel prices rose to record
According to the quote published on April 12 of the steel industry, the price of construction steel is fluctuating at 15,580 - 16,600 million dong / ton. Specifically: In the North, Hoa Phat Steel recorded a sharp increase in price to VND 15,580 / kg with rolled steel CB240. D10 CB300 steel price also touched 15,780 VND / kg. With Viet Italy steel, the price for CB240 steel coil is 15,740 VND / kg, while D10 CB300 steel increases slightly to 15,690 VND / kg.
Viet Duc steel brand is currently priced at CB240 15,690 VND / kg and D10 CB300 at 15,720 VND / kg. For Kyoei brand, CB240 and D10 CB300 coil prices have increased strongly at 15,690 VND / kg and 15,790 VND / kg, respectively.
In the Central region, the steel price of Hoa Phat is 16,110 VND / kg for the CB240 steel coil, and 15,860 VND / kg for the D10 CB300 steel, an increase of 300 VND / kg. Steel price of Viet Duc brand is also at 15,690 VND / kg for CB240 steel coil, and 15,720 VND / kg for D10 CB300 steel. Pomina steel price is currently at 16,090 VND / kg for CB240 steel coil, 16,240 VND / kg for D10 CB300 steel.
In the South, Hoa Phat Steel recorded a CB240 coil price of VND 15,790 / kg. D10 CB300 steel price has increased slightly to 15,840 VND / kg. Pomina brand increased strongly in price, with steel coil CB240 and D10 CB300 steel rose sharply to 16,090 VND / kg and 16,190 VND / kg.
Steel industry experts forecast that the trend of price movements of raw materials and finished steel products in the world in 2021 will be volatile, possibly setting a new price level as in the post-financial crisis period of 2008. Many Previous forecasts suggested that steel prices will only increase until the second quarter, but with what is happening in China, the US, India, the EU and many other major markets, steel prices may rise until the end of the third quarter. .
According to the Ministry of Construction, the cause of abnormal fluctuations in steel prices at the end of 2020 and early 2021 is due to the imbalance between supply and demand of finished steel products. In addition, due to increased input materials, many steel mills have continuously announced to increase steel prices from December 2020 to the present time.
In addition, construction experts said that one of the reasons for the steel shortage is due to the rapid increase in construction in recent years, while the traditional construction method using a lot of steel will cause the steel shortage. domestic steel supply is increasingly overloaded, in which bar steel is mainly used. Although this type of steel can be produced domestically, the quantity is limited and depends on the source of imports, leading to more dependence on imported steel while the import volume decreases, easily imbalance of supply and demand of construction steel. .
Enterprises "headache" find a solution
The increase in steel prices has caused many businesses to use this material to find a way to respond. Each civil construction project, steel often accounts for 10-30% of the total project value, so the price fluctuation of this item has a strong impact on contractors. Many construction enterprises, the contractor said, the steel price increase from the beginning of the year to now has seriously affected the performance of the project that they have signed with partners, ability to contract projects. shrinking.
Talking to the reporter of Construction e-newspaper, a representative of a construction company said: The increase in steel price has increased by more than 30% of the bidding package price, because steel material is not only related to the construction structure but also electromechanical systems, fire protection. Therefore, the selection of the bidding package at this stage is very difficult, and can damage the contractor without the guidance of the competent State agencies in subsidizing steel prices. In the first months of 2021, steel prices increased continuously, all bidding packages were not assigned yet because they were waiting for steel prices to finalize, which also affected the project progress. On that basis, the Company proposes to the State to regulate or provide specific guidance in the price compensation for steel in each time of price slippage.
Representatives of Thang Long Construction Co., Ltd. shared more: According to the State's regulations, the cost reserve does not exceed 10%, but for steel materials in the current period up to 30%, where does this provision come from? Can an adjustment be made and who corrects for this damage, there should be guidance from the competent State agency.
Solutions of State management agencies
According to the report of the Ministry of Construction, a number of solutions have been proposed to stabilize supply and demand and price of construction steel. In the short term, in addition to coordinating with the Ministry of Industry and Trade and the Ministry of Finance to monitor and control steel prices, the Ministry of Construction will actively synthesize information from localities in the country on changes in steel prices. affect the construction investment in order to promptly guide and propose to the Government remedial measures (if any) to ensure the operation of the construction market in 2021.
In the long term: To research and promote to increase the domestic production capacity of finished steel products, aiming to basically meet the domestic demand for finished steel products; Research to adjust the imbalance in the supply of steel products in the market to give priority to the domestic market through the adjustment and balance of the volume of exported steel products; Research and guide to change construction technology to reduce steel consumption in construction works, replace reinforced concrete method with new steel structure construction technology.
Summarizing opinions of many ministries and branches, on February 5, 2021, the Ministry of Industry and Trade reported to the Prime Minister, including some solutions to stabilize supply - demand, and steel prices in 2021. Specifically: Building technical barriers and quality standards to create a healthy competitive environment and ensure consumers' interests. Proactively implementing trade remedies for steel products in accordance with commercial regulations and international law. Track and view the timely handling of anti-dumping of some steel products imported into Vietnam market as well as deal with anti-dumping lawsuits of other countries against Vietnam's steel exports. to minimize damage to steelmaking businesses. Strengthen the market management to prevent and promptly handle the phenomenon of speculation about increasing steel prices, trade fraud, causing loss of State budget revenue and affecting consumers.
The Ministry of Industry and Trade respectfully requests the Prime Minister to assign tasks to a number of ministries and branches. In which, assigned to the Ministry of Construction: “Forecast and supply the demand for steel, construction steel of the economy in 2021 to balance the steel demand for the domestic market and export steel products of all kinds. helping steel enterprises to be proactive in the production and consumption of steel products in order to improve economic efficiency for steel producers ”.
Businesses and public opinion said that: the recommendations of the Ministry of Industry and Trade to the Prime Minister are "great" problems of the country's economy. In fact, the fluctuation of steel prices over the past several months is causing many investors, many construction contractors to come to the brink of "bankruptcy" and other legal consequences if not resolved in time. It is time for the Prime Minister to give an early opinion to assign the Ministry of Construction to be the State management agency on construction activities to issue and guide the price compensation for construction works in the past and in the past. next time if steel price fluctuates. For contractors and investors to feel secure to complete the construction works according to progress, contributing to the stability and growth of the national economy.
Thanh Thanh - Duy Nguyen
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