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Sand prices spike on short supply

Update: April, 04/2014 - 08:49

The price of sand was usually around VND50,000 (US$2.3) per cubic metre, but that had jumped to VND350,000 ($16.6). — Photo Trang Trang

QUANG BINH (VNS) — The high demand for sand in the central province of Quang Binh had caused its price to skyrocket recently, delaying construction projects, according to the provincial Department of Construction.

Nguyen Van Quyet, director of the department, said the price of sand had increased significantly over the past three months, and there was not enough to satisfy demand.

The price of sand was usually around VND50,000 (US$2.3) per cubic metre, but that had jumped to VND350,000 ($16.6).

Many construction companies also had to buy sand from surrounding provinces such as Quang Tri for an additional cost of between VND100,000-150,000 ($4.7-7.1) per cubic metre.

Nguyen Tan Hung, director of Hung Phat Building Material Company in Dong Hoi City's Bac Ly Commune, said that local sand suppliers had run out.

"We have been transporting sand from surrounding provinces, but the price is high. Many customers have decided to wait until the price goes down," he said.

The reason for the shortage of sand, was that a large volume had been transported to Ha Tinh Province to build an iron and steel refinery, according to the chairman of Tien Hoa Commune People's Committee, Cao Van Truc.

This had caused the imbalance in supply and demand and the price hike. The crackdown on illegal sand exploitation by local agencies had also contributed to the shortage.

There are 29 sand mines in the province, but only three are licensed to operate, and most sand supplied to the market comes from illegal exploitation.

Construction enterprises and Tien Hoa Commune People's Committee have sent a petition to provincial authorities asking them to solve the problem.

Truong An Ninh, chief of the secretariat of the provincial People's Committee, has asked the Department of Natural Resources and Environment to complete plans for mines to supply enough sand for the market. — VNS

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