Cement consumption rises 30%

Monday, Feb 02, 2015 08:00

Cement bags piled up at the Bac Giang Cement Company in Bac Giang Province. Cement consumption this year is expected to reach 71- 73 million tonnes, a 4-7% increase over 2014. — VNA/VNS Photo Vu Sinh

HA NOI (Biz Hub) — Cement consumption in the country posted a 30 per cent year-on-year rise in January 2015, reaching 5.87 million tonnes.

The latest figures from the Department of Building Materials under the Ministry of Construction showed that local cement consumption in the first month of the year was higher than those in the previous month and in the same period last year.

Specifically, the consumption was 4.37 million tonnes, which is 6 per cent and 47 per cent higher than last December and January, respectively.

Of the total, the Viet Nam Cement Industry Corporation (VICEM) sold 1.41 million tonnes of cement in local markets, 46 per cent higher than its sales in the corresponding period last year.

In addition, the amount of cement exported was estimated at 1.5 million tonnes.

The department said that the selling price of cement last month was more stable than its price last year, thanks to the balance in supply and demand of cement production and consumption.

By the end of last month, the cement inventory was 2.69 million tonnes, primarily comprising clinker.

Furthermore, the ministry predicted that cement consumption this year would reach 71 to 73 million tonnes, which would be a 4 to 7 per cent rise from that in 2014. Of this total, local consumption is expected to be 52 to 53 million tonnes and exports will reach 21 to 22 million tonnes.

Director of the Department of Building Materials, Le Van Toi, noted that as Vietnamese producers have been part of the cement export market for four years, they have experience in market exploration and contract negotiation.

Chairman of Viet Nam Cement Association, Nguyen Quang Cung, agreed with this view, adding that most cement manufacturers in the world target foreign markets because exports can help balance supply and demand.

Cung also pointed out that local cement businesses made significant investments in modern production lines, branding Viet Nam as a major cement exporter among countries in Southeast Asia.

Moreover, the cement sector should adopt proper methods to promote its export by 2025-30.

Several private cement producers have seen positive results in their exports.

Chairman of the Vissai Cement Group in northern Ninh Binh province, Hoang Manh Truong, affirmed that they had been active in their production and consumption activities, adding that the company's cement exports were equivalent to domestic consumption.

Truong also remarked that the group had signed an export contract of 1.2 million tonnes of clinker with Bangladesh, which brought its market count to 20 countries and territories. These include Germany, Mozambique, Congo, Indonesia, China, Hong Kong, France, Australia and the United States. — VNS

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