Cement market continues solid recovery
Cement market continues solid recovery
Cement sales increased in May, adding to a rising trend which is expected to continue on the back of a credit package worth VND30 trillion (US$1.42 billion) for domestic real estate.
The Ministry of Construction reported cement consumption in the first five months on the domestic market had a year-on-year increase of 9 per cent to 19.15 million tonnes.
Le Van Toi, head of the Building Material Department at the Ministry of Construction, said that in the first half of May, some cement factories had difficulty sourcing clinker due to increased sales the domestic cement market.
The nation had a total cement consumption at home and abroad of 23.8 million tonnes in the first five months. In May alone, the total consumption saw a year-on-year increase of 19 per cent.
Nguyen Thi Tao, deputy general director of Viet Nam Cement Industry Corp (Vicem) Hoang Thach, said cement consumption had recovered since the end of March. For the first quarter, the company had consumed 1.06 million tonnes of cement, 4 per cent higher than the same period last year.
Hoang Xuan Vinh, general director of Cam Pha Cement Company, said that in the first quarter demand exceeded his company's production capacity to reach 618,000 tonnes of cement.
Luong Quang Khai, Vicem's chairman, said Vicem's cement sales had recovery in recent weeks because the bank interest rate had been lower and the domestic real estate market had shown recovery signs.
In the first quarter, consumption jumped by 19.2 per cent against its production plans of 4.91 million tonnes of cement, Khai said.
Cement producers awaited the credit package worth VND30 trillion, which had been approved by the Government, along with a soft interest rate to lift the real estate market as well as other related markets such as cement, steel and wood products.
According to the Viet Nam Real Estate Association, many property projects had been suspended due to lack of credit. If those projects received credit from the package to finish their building, it would promote cement consumption and production.
The package for housing and property traders was necessary to stimulate the property market and other related markets that had suffered bad impacts from a stagnating property market, said Nguyen Tri Hieu, a member of Management Board at the Ocean Bank.
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