Vietnam: No big changes in cement prices

Vietnam: No big changes in cement prices
Published: 22 June 2010

According to statistics of Building Materials Management department (Ministry of Construction), there are 105 cement manufacturers in the country. The capacity of the whole industry could reach 61Mt. Whereas in the sector’s 2010 plan, the manufacturers is only expected to produce in total 53Mt. Demand of the country is estimated about 50Mt. This means that cement production will be at about three million tonnes in excess this year.
In May, cement consumption volume was only 4.3Mt, down 14.17 per cent compared to 5.01Mt in the previous month, according to statistics of building materials management department. In the first five months of 2010, the total cement consumption reached only 19.67Mt, about 39 per cent of the whole year plan. The sector’s production volume whereas already reached 20.15Mt, equivalent to 40.3 per cent of the plan.
According to the latest report of Vietnam Cement Industry Corporation, the current products in stock of manufacturers have reached the number of 1.4Mtincluding cement and clinker. This made Ministry of Construction recently issue official documents requesting members of the sector to provide information on the status of clinker and cement production and consumption of the current and previous month. Such information should include (1) production and consumption volume; (2) sales prices at the factory and retailers; (3) difficulties in production, consumption and delivery; and (4) recommendations on resolution.
The current prices of PCB 30 and PCB 40 cement in Northern provinces are hovering from about 0.92 to 1.1 million dong per tonne, down approximately 25,000 dong per tonne compared to that of May due to no increase in demand. In southern provinces, prices are stable from about 1.18 to 1.36 million dong per tonne. Since supply volume exceeds demand volume, it is difficult to increase sales price in the near future.