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Essential commodity prices to remain rather high but stable in June
The prices of many essential commodities will remain rather high but stable during June as a result of continued efforts to keep supply and demand in balance, and to implement a number of measures to curb inflation, following the Prime Minister’s directions.
The domestic market management group has estimated that the prices of domestic goods will remain rather high but stable in June despite climate change (hot spells, rainstorms, and whirlwinds), the prevalence of diseases and soaring prices, especially of crude oil, food and fertilizers, on the global market.
Currently, the Mekong Delta provinces have completed the planting of the summer and autumn crops. Food supplies are abundant on the market while the demands for rice from exporters has fallen after a sharp increase in late April. The price of essential food has begun to stabilise as rice supplies in the northern provinces are increasing.
The group forecasts that if the weather is fine in June farmers will harvest winter-spring crops early and food prices will be stable. However, if businesses sign new export contracts food prices in the Mekong Delta provinces will rise sooner or later month.
Diseases being contained
If cattle and poultry diseases are contained food prices will remain rather stable, according to the domestic market management group’s forecast. Pork prices increased by 94-113 percent compared to the same period last year due to the wide spread of blue ear pig disease and high input costs. However, in May, the prices of beef, poultry and seafood products fluctuated slightly. Tra and basa catfish prices fell to VND13,500-13,800 per kilogram and fruit and vegetables prices also down slightly.
Fertiliser prices kept under control
The price of fertilisers on the world market continues to rise as it is affected by China raising its export tax and reducing its supply. The price of urea fertiliser has increased to US$650 per tonne while the highest price in the first five months of last year was US$330 per tonne.
However, economic experts say that fertiliser supplies will meet domestic consumer demands thanks to imports and increased domestic production. At present, the price of urea fertiliser from China is VND7,200 per kilogram while in Ho Chi Minh City it is VND7,800 per kilogram.
Consumption decreases
In June, cement prices from producers will remain stable and supply in the northern provinces will meet consumer demands. In the southern provinces, especially in Ho Chi Minh City, cement prices increased due to the high demand and speculation. The Ministry of Construction (MoC) has directed the Cement Corporation to deliver cement from north to south. However, the MoC says that cement and steel prices will be unchanged.
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