Cement makers hike prices amid coal shortage
Cement makers hike prices amid coal shortage
Cement producers have pushed up sales prices by VND50,000-90,000 ($2.2-3.9) per ton due to higher production costs, especially amid thinner coal supplies.
A cement plant in Vietnam's southern province of Binh Phuoc. Photo courtesy of Vietnam Cement Industry Corporation |
Ha Tien 1 Cement JSC announced a price hike of VND80,000 per ton for packed cement branded Vicem Ha Tien, applicable from early this month.
Late last month, Bim Son Cement JSC increased its packed and unpacked cement prices by over 6 percent. Meanwhile, Vicem Hoang Mai Cement JSC announced a price hike of VND50,000 per ton for all kinds of cement.
According to statistics from Vietnam Association of Construction Contractors, prices of coal in the Vietnamese market, with thinning supplies, had recently surged 7-10 percent. Coal accounts for 40-45 percent of cement production costs.
Prices of diesel oil and many kinds of additives used in cement production have also risen, leading to cement price hikes since Oct. 25.
Many cement producers reported smaller profits or losses in the third quarter of this year. Ha Tien 1 Cement JSC under Vietnam National Cement Corporation (Vicem) racked up losses of over VND20 billion.
According to statistics from Vicem, total cement sales on the Vietnamese market stood at 11.8 million tons in the third quarter, seeing a year-on-year decline of nearly 24 percent. Specifically, Vicem sold nearly 4 million tons of cement, down more than 20 percent.
Cement firms often make big revenues and profits in the last quarter of a year, the peak construction season.
The Building Materials Department under the Ministry of Construction predicted cement demand would surge when the Covid-19 pandemic is controlled, and construction resumes.
Local securities company VNDirect said in the coming months, Vietnamese cement companies could export their products to some neighboring countries facing temporary cement shortages.
