Vietnam: Exports fell, cement consumption pressures the domestic market

During the first eight months of the year, the consumption of cement products is estimated to only reach about 65.3 million tons, down about 8% compared to the same period in 2021. In which, domestic consumption is about 43.5 million tons, equivalent to the same period. In the same period last year, exports were only about 21.7 million tons, down about 19%.


Information from the Vietnam Cement Association (VNCA) said that the current pressure on consumption of the cement industry is focusing on the domestic market. The reason is that cement exports have decreased significantly in recent months. In addition, input materials for cement production are still increasing, especially coal prices, causing many difficulties for cement businesses.



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Specifically, in August, cement consumption was about 8.86 million tons, although it increased by about 3 million tons compared to July, it still decreased by about 7% compared to the same period in 2021. In which, consumption of cement in the domestic market is about 6.36 million tons; cement export is estimated at 2.5 million tons.


In the first eight months of 2022, the estimated consumption of cement products is only about 65.3 million tons, down about 8% over the same period in 2021. Of which, domestic consumption is about 43.5 million tons, equivalent to the same period last year. Notably, the export of cement products in 8 months only reached about 21.7 million tons, down about 19% over the same period in 2021.


Currently, the national inventory in 8 months is about 5.9 million tons of raw materials, equivalent to 25 to 30 days of production, mainly clinker. In August, the selling price of cement remained at the same level as in July.


Explaining about the sharp decrease in the output of cement products in the export market, experts in construction materials said that China, the largest export market in Vietnam's cement products, accounts for about 50% of export output, but this country is restricting its opening to fight against the COVID-19 epidemic, which has caused a sharp drop in the export volume of cement products.


According to VNCA, cement factories are facing many difficulties because of high input material prices, especially coal prices. According to calculations, the price of coal now accounts for over 60% of the cost of cement production, which has put cement manufacturing enterprises under intense competitive pressure on price. This situation forces many manufacturing enterprises to reduce production output because the more they produce, the more they lose.

Source: Vietnambiz