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The price fluctuates the most in 5 months, cement consumption benefits greatly

The most volatile price in 5 months, consumption cement great benefit

Statistics of the Cement Association said that in the past 5 months the price of cement has increased 2 times . Accordingly, cement price increased for the first time at the end of March, cement price increased from 30,000 – 50,000 VND/ton. The second time cement prices increase in May, with an average increase of 40,000 – 80,000 VND/ton.

Prices fluctuated the most in 5 months, cement consumption benefited from infrastructure projects - Photo 1.

Despite two price increases, cement consumption since March has been recovering strongly thanks to increased exports and benefits from public investment projects.

In May 2022, cement consumption in both domestic and export markets is estimated at 9.27 million tons, up about 3% over the same period in 2021. Notably, the domestic selling price of cement increased from 40,000-80,000 VND/ton due to increased input material price pressure.

Of which, domestic consumption is about 5.97 million tons; exports are estimated at 3.3 million tons.

Accumulated from the beginning of the year to the end of May, consumption of cement products reached about 44.12 million tons, equivalent to the same period in 2021. Of which, domestic consumption was about 26.73 million tons, down about 2 million tons. % over the same period in 2021, but exports increased by about 5% over the same period in 2021; estimated at 17.39 million tons.

Currently, the country’s inventory of cement products in the 5 months of 2022 is about 4.7 million tons, equivalent to about 20-25 days of production, mainly clinker.

According to the Vietnam Cement Association in May 2022, cement selling price in the country increased about 40,000-80,000 VND/ton, depending on the type of cement (PCB30, PCB40…) and the brand of cement, due to the huge increase in coal and petroleum prices; export prices are relatively stable.

According to experts, in 2022, the cement industry will face pressure to increase input costs due to increased input material prices. In which, coal is the raw material that accounts for about 30% of the cost structure for cement production.

Forecast about cement market in 2022, experts believe that domestic cement consumption will grow again because localities are accelerating disbursement of public investment capital and implementing the construction of key transport infrastructure works. On the other hand, businesses are boosting their export activities when the world’s major cement producers, especially China, cut capacity. However, the gross profit margin of manufacturing enterprises will face great pressure to maintain as it is now due to strong competition and pressure from input prices.

In 2021, before the negative impact of the Covid-19 epidemic, the cement industry still set a record of consumption with 108.4 million tons, an increase of 8.1% compared to 2020. Of which, domestic consumption was 62, 7 million tons, up 0.9%, accounting for 57.8% of the industry’s share; exported nearly 46 million tons, up 20.1% and accounting for 42.15% proportion.

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