Construction sand prices increase dramatically, contractors are struggling

Over the past week, the price of construction sand in Dak Nong and Dak Lak has nearly doubled, while the scarce supply has caused a series of projects to stop, making contractors and people worried.

On the morning of May 18, many sand dealers and retailers in Gia Nghia City (Dak Nong) announced another price increase. The price of construction sand was reported at 800,000 - 900,000 VND/m³, an increase of nearly 100% compared to before. In some areas such as Tuy Duc and Dak R'lap districts, the price reached 1 million VND/m³.

Sand price increased by more than 1 million VND/m³, people were in trouble

According to dealers, the reason for the skyrocketing price of sand is due to the sharp decrease in supply from sand mines in Krong No district, many mines have temporarily stopped or sold in small quantities due to being out of stock, damaged vehicles or waiting for registration to be completed.

Surveys show that the amount of sand supplied to the market is currently only about 20-30% of what it was before. Many sand fields in Dak Nang, Quang Phu, Buon Choah, and Nam N'Dir communes have been almost completely closed for the past week.

"The commune authorities have not received any notice about stopping sand mining or selling. People have asked to buy but cannot find any, so they have to turn to more distant places with very high transportation costs," said Mr. Do Thanh Hung, Chairman of the People's Committee of Quang Phu commune (Krong No district, Dak Nong province).

"If this situation continues, even if there is sand, we will not be able to build during the rainy season. We are really worried," said Mr. Le Van Tuan, a construction business owner in Gia Nghia.

Agents say sand is still scarce despite high prices - Photo: TAM AN

A similar situation is also happening in Dak Lak. Sand prices in Buon Ma Thuot City and the districts of Cu M'gar, Krong Buk, Ea H'leo, Buon Ho town... are currently fluctuating from 500,000 - 550,000 VND/m³, nearly double compared to a month ago.

"My company is implementing 5 projects, but all 5 have been temporarily suspended due to lack of sand. Prices have increased by nearly 80%, and even when calling the mine, there are no trucks to transport it like before," said the director of a construction company in Dak Lak. He said he is worried because some public projects are at risk of being behind schedule and having their contracts penalized.

Mining sources have seriously decreased due to... unregistered ships
Not only businesses, but construction material agents are also facing difficulties. Ms. Ta Bich Tram, owner of a materials store in Buon Ma Thuot City, said: "Sand prices have increased but there is no product. Cement, steel, and stone are also unsold because people do not dare to repair their houses."

According to the Department of Agriculture and Environment of Dak Lak province, the sand shortage is due to some mining vehicles having to temporarily stop due to expired registrations, combined with low river water levels making sand extraction difficult.

However, this is a phenomenon that occurs periodically during the dry season and has never caused sand prices to increase as dramatically as this year. Some opinions say that there is a phenomenon of hoarding goods, creating artificial scarcity to push up prices.

According to the Department of Agriculture and Environment of Dak Nong province, the whole province has 7 businesses licensed to exploit sand on the Krong No River with a total capacity of more than 180,000m³/year. Almost the entire sand supply of the province depends on this river. In addition, the province also imports sand from localities such as Dak Lak, Lam Dong, and Binh Phuoc, but the import volume is insignificant.

On May 5, the Ministry of Public Security issued a telegram requesting local police to conduct a general inspection of the exploitation, transportation, and consumption of river sand and gravel. In Dak Lak, the Economic Police Department is coordinating to inspect 21 sand mining enterprises.

Lieutenant Colonel Nguyen Duc Duy, deputy head of the Economic Police Department, affirmed: "The inspection is not the cause of the sand shortage. The goal is to restore order and transparency in mining activities."

Meanwhile, the "sand price storm" and lack of materials are pushing many key projects to the brink of stagnation. In Dak Lak, the Project Management Board of Component 3 of the Khanh Hoa - Buon Ma Thuot Expressway said that it currently needs about 400,000m³ of sand but has no stable source. Many public works in Buon Ma Thuot City, Ea Kar… are also behind schedule due to lack of construction sand.

The Departments of Agriculture and Environment of Dak Lak and Dak Nong provinces are inspecting and verifying the real cause of the suspension of operations of a series of mines, and at the same time proposing solutions to stabilize the supply of sand to the market.

Source: Tuoi Tre Newspaper