Cement prices to remain solid

Thursday, Oct 17, 2013 10:52

Workers load cement at the Viet Nam Cement Industrial Corporation. Cement prices are expected to remain unchanged this month. — VNA/VNS Photo Tuan Anh

HA NOI (VNS)— The Ministry of Finance's Pricing Management Department expected the price of cement to remain stable this month after increasing last month.

Some member enterprises of the Viet Nam Cement Industrial Corporation (Vicem) raised prices by 5 to 9 per cent one month ago to VND1.3 million – VND1.5 million per tonne in the north and VND1.6 million – VND1.8 million in the south.

The price in the south is often higher than in the north because almost all cement factories are located in the north, said Luong Quang Khai, Vicem Chairman.

Khai attributed the price increase to higher production costs, which in turn were due to electricity price hikes.

The higher electricity price added VND80 billion to production costs, said Hoang Xuan Vinh, general director of Cam Pha Cement Company. Cam Pha increased its cement price by VND100,000 per tonne in September, its first surge since the end of 2011.

Higher coal and petrol prices also contributed to the price hike, forcing the company to spend VND50,000 more to produce each tonne of cement, Vinh said.

The Vissai Cement Company increased prices VND40,000 per tonne to VND1-1.2 million for the same reason, said Nguyen Vu Thanh, Vissai's deputy general director in charge of business.

In the first nine months of this year, the cement industry produced 38 million tonnes, 11 per cent more than last year. — VNS

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