Why do construction material prices increase suddenly?

57.2% of surveyed enterprises said that the high price of construction materials has strongly affected production and business activities.

Construction material prices increased dramatically in the first 6 months of the year

The General Statistics Office said the rate increased by 10.1 percentage points compared to the first quarter and is a record high in recent quarterly surveys.

created, in June, the housing, electricity, water, fuel and construction materials group increased by 1.42% compared to the previous month, affecting the overall CPI increased by 0.27 percentage points, mainly due to the price of housing maintenance materials increased by 2.93% due to scarce supply, high production costs and construction...

Compared to the same period last year, the housing, electricity, water, fuel and construction materials group in June this year increased by 7.23%, affecting the overall CPI increase by 1.36 percentage points.

Faced with this sudden data, Ms. Nguyen Thi Huong, Director of the General Statistics Office, confirmed that up to 57.2% of survey enterprises showed that the biggest difficulty in the second quarter was the high price of construction materials.

Ms. Huong explained that one of the reasons for this situation is the massive public investment in large infrastructure projects (highways, ports, airports, etc.), causing the demand for sand, stone, steel, and cement to increase dramatically. Meanwhile, the source of sand and stone for construction in some localities is still locally scarce, due to a lack of supply: mines expired, two mines interrupted, landslides, etc.

However, the representative of the General Statistics Office affirmed that the supply of construction materials is still abundant, reflected in the production index of construction material manufacturing industries (iron and steel, cement, concrete, etc.) still maintaining positive growth momentum in the first 6 months of the year, meeting the construction needs of businesses and households.

Another reason for the increase in construction material prices is the increase in input material costs - energy - transportation: Steel prices increased slightly due to the increase in world billet and iron ore prices; Asphalt prices also increased due to the increase in gasoline and oil and the slight increase in transportation costs. For cement, although prices were relatively stable in June, the increase in raw material costs and coal-fired electricity caused increased cost pressure.

In addition, the psychology of hoarding goods at some agents and intermediary businesses also contributes to pushing up material prices in the short term.

The General Statistics Office stated: Fluctuations in construction material prices affect the production and business activities of enterprises in the construction industry. Increased input costs increase total construction costs, affecting the profits and financial efficiency of contracts signed at fixed prices.

"If prices increase for a long time, it can slow down construction progress, forcing investors and contractors to adjust financial plans, progress and technology," the General Statistics Office said.

However, according to the results just announced, the growth of the construction industry in the first half of 2025 increased by 9.62%, showing positive results of the construction industry. The reason is due to strong public investment in transport and urban infrastructure: key transport projects are accelerated, social housing projects are promoted, programs to eliminate temporary and dilapidated houses are strongly implemented nationally; Legal and administrative reforms pave the way for many new projects.

Private capital and FDI flows into civil and industrial construction; The residential real estate market in the first 6 months of the year began to warm up. A stable macroeconomic environment helps the construction industry develop sustainably...

"The above factors have created an impressive breakthrough for Vietnam's construction industry in the first half of 2025," the General Statistics Office commented.

TH (according to VTC News)

Source: https://baohaiphongplus.vn/vi-sao-gia-vat-lieu-xay-dung-tang-dot-bien-415670.html