Material market in Q1: Stabilizing except for the "craze" of steel!

Real estate investors accelerate the implementation of the project to give out soon, which is one of the reasons for the construction materials market in the first quarter of 2016 with good consumption across many industries.
While cement "light step" with consumption reached 15.71 million tons, up 10% over the same period, the steel industry has an outstanding level, reaching 1.52 million tons, up nearly 23% over the same period. period.

This figure set a record increase of the steel industry in the past 3 years, despite the fierce debate surrounding the issue of "imposition of provisional safeguard duties on imported steel ingots and castles".

Meanwhile, the construction brick industry, sanitary porcelain also had a clear recovery, although products from China still "flooded in" as usual.

The issue of "provisional safeguard duties of 23% on steel billets and 14.2% on imported long steels" has sparked conflicting arguments between outsiders and industry insiders, even enterprises " in the house ”denouncing each other before the question“ who is profiteering ”.

When all the issues are not finished, the only thing that is clear is that the consumers are disadvantaged, from some investors to construction contractors, many units will be damaged if they buy when steel prices peak. Not excluding the agents of the steel industry also tasted bitter fruits with an attempt to "hold" speculation waiting for prices to continue to rise.

The controversy over the temporary imposition of self-imposed tax regulations has not ended yet when the Competition Administration Department (Ministry of Industry and Trade) issued a written notice to hold a public consultation session on the investigation case of safeguard measures. with a number of imported billet and long steel products to the parties concerned can present the views related to the case. The consultation session is scheduled to be held on 5/5/2016.

The steel fever was created by a policy that caused a series of businesses to announce information to increase profits by "buying cheap steel", or "stockpiling earlier". For example, Tien Len Steel announced a first quarter profit of VND 100 billion, the reason is "there is a lot of cheap inventories and the provision for risk provisions from the end of 2015". This is the "dream" profit level when in 2015, this company lost 169 billion dong.

DIC Investment and Trading JSC also stated that the business results in the first months of 2016 were very positive because of importing low-price steel, accounting for 60% of the expected business output of the year.

Steel market has slightly decreased since March 25 and by the beginning of April 2016, steel prices on the market have returned to correspond with the pre-fever price. Accordingly, in Hanoi, Hoa Phat steel decreased from 11 million VND / ton to 10.2 to 10.5 million VND / ton; in TP. HCM, the listed steel price of Southern Steel is 10.2 million VND / ton, Pomina 10.25 million VND / ton, Vietnam Japan steel 10.5 million VND / ton, Vietnam America 9.5 million VND / ton, Vietnam Australia 8.45 million / ton. The retail market also no longer had a scarcity of goods and sold out as before.

At the end of the first quarter of 2016, the cement industry also finished as expected with a 10% increase in consumption. In the field of export, although many enterprises declared "hello" when competing with cheap clinker from China, the export output also reached 3.5 million tons, equaling 102% over the same period.

Mr. Le Van Toi, Director of Construction Materials Department (Ministry of Construction) said: “The cement market in the first quarter has no changes and the policies of the manufacturers have not changed much. If the consumption situation continues to be stable as at present, the figure of 77-78 million tons of consumption in a year may be completed. "

In the field of ceramic tiles, sanitary ceramics, domestic enterprises still stand firm thanks to the protection and good investment in technology. Accordingly, the import tax on sanitary ceramic products is applied from 5 to 35% depending on the region, which reduces the competitiveness of imported products.

However, for ceramic tile products that are considered to have hot growth, domestic enterprises have to reduce selling prices to compete, even though consumption has been better. For example, CMC is known as a tile manufacturer that always achieved positive business results over the years thanks to advanced technology, launched products suitable for the market but also had to reduce the selling price because must compete with promotional activities, discounts of other businesses.

Mr. Nguyen Quang Huy, General Director of CMC said: “By the end of the first quarter of 2016, CMC consumed about 2 million m2, the amount of consumption has increased over the same period but not significantly due to the competition in this market. very fierce. "
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