Construction materials market shows signs of easing after price surge

Construction materials market shows signs of easing after price surge

Several steel companies have announced price cuts for construction steel products, marking the first downward adjustments this year and offering some relief to contractors facing rising project costs.

A steel factory in Long An Province. — VNA/VNS Photo

The domestic construction materials market is showing early signs of easing after months of sharp price increases, although some key materials are expected to remain elevated amid strong demand and supply constraints.

Several steel companies have announced price cuts for construction steel products, marking the first downward adjustments this year and offering some relief to contractors facing rising project costs.

From early June, a branch of Hoa Phat Steel Pipe Co in Bình Dương reduced prices for rebar and wire rod products by between VNĐ150,000 and VNĐ300,000 (US$5.75-11.50) per tonne, depending on product type and region, baoxaydung.vn reported.

In the northern region, rolled steel prices fell by VNĐ170,000 per tonne, while larger reductions were recorded in the central region, where prices dropped by as much as VNĐ220,000 per tonne.

Viet Duc Steel Plant also announced similar price cuts.

The reductions follow a volatile first five months of 2026, during which the industry recorded at least three rounds of steel price increases. Construction steel prices rose above VNĐ15.6 million per tonne after cumulative increases of VNĐ100,000-300,000 per tonne in each adjustment.

Cement prices also increased in the first quarter and early May, rising by VNĐ50,000-100,000 per tonne. Bagged cement currently sells for between VNĐ1.5 million and VNĐ2.4 million per tonne, while bulk cement ranges from VNĐ1.25 million to VNĐ1.85 million per tonne.

Meanwhile, prices of construction materials such as sand, bricks and stone remain under pressure due to localised supply shortages and strong demand from major public infrastructure projects.

Prices for some materials have risen by 15-25 per cent since the start of the year, with occasional increases of up to 50 per cent in certain areas. Yellow sand is currently priced at VNĐ600,000-750,000 per cubic metre, while construction stone costs around VNĐ750,000-780,000 per cubic metre, up from about VNĐ500,000 dong earlier this year.

Thái Duy Sâm, vice chairman of the Vietnam Association of Building Materials, said the market was being shaped by rising input costs and supply-demand dynamics.

Steel producers' recent price cuts reflected efforts to stimulate demand as activity in the residential construction sector remained cautious, he said.

By contrast, cement, stone and sand continue to face upward pressure from elevated electricity and coal costs, while tighter regulations on mineral extraction have constrained supply.

The imbalance between strong demand from public investment projects and available supply has been a key driver of higher prices for construction materials, Sâm told baoxaydung.vn.

Industry experts expect the market to stabilise at new price levels in the second half of 2026, with clearer differentiation among material groups.

Steel prices are likely to remain stable or edge lower in the near term as the rainy season slows construction activity. Meanwhile, sand, stone and cement prices are expected to remain elevated or increase modestly, supported by demand from major transport infrastructure projects entering peak construction phases later this year.

They said prices of these materials are also heavily influenced by local mining and licensing policies, making them more volatile than industrially manufactured products. 

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