Vietnam cement consumption reaches 62Mt in 2017

Vietnam’s demand for cement increased seven per cent YoY to 62Mt in 2017, according to the Department of Price Management, Ministry of Finance.

The rise in cement sales has been attributed to a rise in construction projects, particularly in the real estate and transport sector. However, when compared with 2016, the increase was marginal as prolonged rains and storms impacted sales.

Cement consumption in December advanced three per cent to 6.5Mt with prices reported as stable as inputs remained level.

Cement retail prices in the northern and central regions stood at VND1.05m-1.55m/t (US$46-48/t) while in the south consumers paid VND1.46m-1.95m/t. Export prices at Hòn Gai cement plant in December were US$48.5-51/t while clinker prices reached US$29-30/t FOB from Cam Pha cement works. The Ministry of Finance expects cement prices to remain stable in 2018.

In December total cement output reached 6.3Mt, up by 1Mt from November, resulting in a full-year production of 65Mt.