Lack Of Sand Not Just Build Investors “Sweat”

Sand is used not only in the construction industry but also in many different industries. Therefore, the price of sand dancing due to lack of supply not only construction contractors a headache, but also many other sectors, especially construction restlessness.

Sand is considered to be the most common material in nature. Sand and gravel are the two most exploited materials on Earth, accounting for 85% of the total volume of underground mining resources each year. Sand is used in many industries, products such as construction, cosmetics, toothpaste, electronic batteries … In which, construction (real estate, traffic) is the sandiest use sector.

You can read more information at Vietnam Real Estate Market

It is estimated that the world’s sand mining industry is valued at $70 billion, of which Asia is the largest user of sand. Of the 13,7 billion tons of sand mined worldwide in 2016, Asia accounts for 70% of the total, of which China is the leading country. The amount of sand used by China over the past four years is more than the amount of sand used by the United States in the 20th century

According to the United Nations, the number of a super city is growing rapidly and the rate of exploitation is higher than the speed of sand that is born in nature, which makes sand increasingly scarce.

In Vietnam, the survey data show that the current sand stock is over 2 billion cubic, the exploited capacity in 2015 is about 50-60 million cubic, by 2020 about 130 million cubics per year. Meanwhile, the demand for sand from 2016 to 2020 requires 2,1 to 2,3 billion cubics of sand.

According to Mr. Pham Van Bac, Director of Construction Materials Department, Ministry of Construction, with the current level of use, by 2020 there will be no sand for construction work.

Stagnant work, glass industry anxious

Recently, the lack of supply has led to the price of sand dancing and causing many large traffic projects such as highway Trung Luong – My Thuan (Tien Giang), Highway 60 (Ben Tre), Lo Soi – Rach Soi (Kien Giang) stagnated. Some other public investment projects are slow to disburse funds due to lack of sand.

There are many large projects in the Mekong Delta, although the preparation stages have been completed, but cannot sign contracts with contractors because there is no construction sand, sand prices rise, resulting in disbursement capital is delayed, “said Tran Quoc Phuong, Director General Department of National Economic Planning, Ministry of Planning and Investment.

Risk of severe sand shortage

The use of bluff has led to the risk of severe sand

Lack of sand not only severely affects the construction and real estate sectors, but also the building glass industry, as sand is also a major input for the building glass industry.

Pham Trung Kien, vice chairman of Vietnam Glass and Glass Association (Vietglass), said: “If there is a lack of raw material sand, the glass industry will face great difficulties. Sand is the main raw material for glass and there are no commutative products. In the case out of the sand, glass factories will have to stop production leading to scarcity of supplies”.

In 2016, only one of the four construction glass manufacturing plants stopped production for maintenance but the glass shelf has increased by 1,5 times. Therefore, if there is a shortage of production materials that the factories have to stop production, not only the market will be severely disturbed, but the damage to the glass factories must stop production is also very large (characteristics of the glass factory has to produce continuously for about 10 years, if it stops, the cost of repair will be very expensive, almost by rebuilding the new factory).

In the face of the lack of material sand, the issue of alternative materials is being studied. However, according to experts, the use of sand must first save, especially in the leveling (sand leveling 70 to 80% of sand), the investors need to replace with other materials to have “save” for the future.

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