Cement, steel prices drop as fuel cost tumbles
Cement, steel prices drop as fuel cost tumbles
The price of Lao-made cement and steel has dropped as fuel prices continue their downward spiral, creating a ready supply on the local market.
In Vientiane last month the price of Lao mix P425 Blue (Bull) was down by 17,500 kip from 787,500 kip to 770,000 kip a tonne according to the Domestic Trade Department.
Ten metre lengths of Lao steel P8 fell in price from 4.5 million kip to 4.3 million kip a tonne, while one tone of P12 fell from 4,125,000 kip to 4,075,000 kip.
In Luang Prabang province, the price of Lao mix P425 Gold-Blue (Bull) fell by 830,000 kip to 780,000 kip a tonne; 850,000 kip to 820,000 kip forLao mix P425 Gold-Green (Bull); 880,000 kip to 830,000 kip for Lao mix P525 Red (Bull); and 900,000 kip to 850,000 kip for Lao mix Blue (Bull).
The cost of a 10 metre length of Lao steel P10 dropped from 700,000 kip to 650,000 kip a tonne, and from 7 million kip to 5.5 million kip for P12.
The cement price also dropped as Lao cement factories usually produce sufficient to supply market demand and lower the price of imported cement products.
The steel price dropped after factories lowered transport costs in the wake of falling fuel prices.
Although cement and steel prices have fallen around the country, some products have not changed in price while others have increased.
The price of cooking gas is higher due to increased demand, as is the cost of most consumer goods.
In some provinces, notably Luang Namtha, one cylinder of gas has risen in price from 170,000 kip to 180,000 kip.
Tickets on buses nationwide remain unchanged even though the government announced they would decrease on various routes between the capital and the provinces.
The government has insufficient buses for public use while all bus terminals and companies are owned by the private sector. This makes it difficult to get them to follow the guidelines, according tothe Ministry of Public Works and Transport.
Bus operators have their own reasons for not cutting ticket prices, saying that taxes, the cost of spare parts, and bad road conditions are eating into their profits.
