Construction Material Prices Surge in HCMC: Sand Up 73%, Steel Rises Multiple Times

Overview

Construction material prices in Ho Chi Minh City surged sharply in June 2026, with sand and stone prices rising 73% and 63% year-on-year, respectively, according to a report from the HCMC Department of Construction. Steel prices from Hoa Phat (HPG) and other major brands also recorded multiple increases, putting severe pressure on contractors and homeowners. The price hikes reflect ongoing supply constraints and rising input costs across the construction materials sector.

Key Facts

• Sand prices at some mines reached 340,000 VND/m3, while retail prices at construction material stores ranged from 450,000 to 480,000 VND/m3.
• Stone (1x2) prices at mines ranged from 225,000 to 390,000 VND/m3, with retail prices delivered to sites exceeding 820,000 VND/m3.
• Sand prices surged 73% year-on-year, and stone prices rose 63% year-on-year in June 2026.
• Hoa Phat (HPG) adjusted steel prices at least twice in March 2026, with D10 rebar (CB300-V) listed at 15,360,000 VND/ton in HCMC.
• Vicem Ha Tien also adjusted cement prices in early June to offset energy costs.
• Contractors with fixed-price or lump-sum contracts signed in late 2025 face significant losses, forcing delays or renegotiations.
• Homeowners face additional construction costs of tens to hundreds of millions of VND, leading to scaled-back plans.

What Happened

The HCMC Department of Construction published its June 2026 price report, revealing sharp increases in construction material prices. Sand and stone saw the most dramatic rises, with sand up 73% and stone up 63% year-on-year. Prices at mines and retail outlets varied widely, with stone 1x2 at some mines reaching 390,000 VND/m3 and retail prices exceeding 820,000 VND/m3 delivered to sites. Sand prices at retail were quoted between 450,000 and 480,000 VND/m3.

Steel prices also rose, with Hoa Phat (HPG) implementing at least two price increases in March 2026. Other major brands such as VNSteel and Vina Kyoei also adjusted prices. Cement prices increased as Vicem Ha Tien announced adjustments in early June to cover energy costs. The price surge is attributed to supply constraints and rising input costs, with experts predicting high prices will persist through the second half of 2026.

Market Context

HPG shares closed at 22,950 VND on July 10, 2026, down 1.08% on volume of 11.9 million shares. The stock trades on HOSE. The construction materials sector is under pressure from rising input costs, but steel producers like HPG may benefit from higher selling prices. However, demand-side risks are emerging as contractors and homeowners delay or scale back projects due to cost overruns. The broader market sentiment remains cautious amid inflationary pressures.

Strategic Significance

For HPG, the price increases provide a near-term boost to revenue per ton, but the sustainability of demand is uncertain. If high material costs persist, construction activity may slow, reducing steel consumption. HPG’s diversified product mix and cost advantages may help mitigate some impact, but the company’s exposure to the domestic construction market makes it sensitive to these trends. The ability to pass on costs to customers will be key to margin protection.

What to Watch

• HPG’s Q2 2026 earnings report for margin trends and volume guidance.
• Further price adjustments by HPG and competitors in response to input costs.
• Government measures to address supply constraints in sand and stone.
• Construction activity data in HCMC and nationwide for signs of demand slowdown.
• SBV policy moves on interest rates that could affect construction financing.