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Domestic cement consumption is forecasted to continue flat in 2023

The Department of Building Materials (Ministry of Construction) expects the cement consumption demand of the whole industry in 2023 will reach about 100-105 million tons. Domestic consumption is 60-65 million tons, and export is 35-40 million tons.


Source: Internet


Information from the Vietnam Cement Association (VNCA) said that cement consumption demand from the second half of 2022 tends to slow down due to low demand for new construction and repair of houses and works.


According to VNCA's data, total cement consumption in the domestic market in 2022 will reach 62.7 million tons, almost equivalent to 2021. Although the Government has stepped in to remove obstacles for real estate businesses from the end of 2022, this market is still in a problematic situation is this market is still in a difficult situation so far.


In 2023, the real estate market is forecast to continue to face difficulties; when the capital flow has not been cleared, the psychology of homebuyers is cautious ... making many businesses not dare to promote investment in new projects, instead in which to choose to focus on exploiting existing projects, extending the construction schedule.


The Department of Building Materials (Ministry of Construction) expects the cement consumption demand of the whole industry in 2023 to reach about 100-105 million tons, expected to increase by 7-10% compared to 2022. Domestic consumption is 60 - 65 million tons, and export is at 35-40 million tons.


Assessing prospects for 2023, SSI Securities also forecasts that domestic cement consumption will be flat compared to 2022 because the real estate market is still weak. In addition, there are difficulties from within the industry when the supply of cement exceeds the demand (in 2023, there will continue to be many new cement production lines put into operation, bringing the cement supply to about 120.7 million tons.


However, the central positive point is that the public investment plan in 2023 is also estimated to increase by 25% compared to 2022 in value which will be the driving force to support cement consumption in the country.


In the coming time, cement businesses are waiting for signals from the recovery and development of the real estate market, with a series of solutions being directed by the Government to focus on implementing the market development real estate.

(Enterprise and Business)




CEMENT INDUSTRY REPORT - DECEMBER 2022


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