Displaying items by tag: Vietnam National Cement Asociation

Vietnam: Major cement producers Vicem Bỉm Sơn, Bút Sơn, The Vissai, Thành Thắng Group and Xuân Thành Cement will increase prices from 20 October 2024 due to rising production costs from electricity, coal and packaging, according to Viet Nam News. A representative from Thành Thắng Group said that the company has recently faced a 4.8% rise in electricity prices, impacting production costs despite measures to improve efficiency and cut costs, like utilising waste heat recovery systems. The decision to increase electricity prices by Vietnam Electricity reportedly came into effect on 11 October 2024, with ongoing global geopolitical conflicts also contributing to rising costs for coal and oil.

The Vietnam National Cement Association said that price increases were ‘inevitable’, as cement has reportedly been sold below cost ‘for years’ and companies would likely not survive if prices were not increased to cover the additional costs. The list of cement producers raising prices is reportedly expected to increase in the coming weeks.

Vietnam: The Ministry of Construction has proposed resuming cement sector planning to the prime minister, addressing the critical oversupply affecting the industry. Cement planning ceased six years ago, leading to unregulated project approvals. Vietnam now faces a surplus, with 92 production lines and a total capacity exceeding 120Mt/yr, while domestic consumption lags at under 60Mt/yr and exports are only 30Mt/yr. The construction slowdown exacerbates the issue, with redundant clinker production capacity at approximately 50Mt/yr, leading to risk of cement producers going bust, unless suitable measures are introduced. The latest figures from the Vietnam National Cement Association (VNCA) show that cement plants are running at just 70-75% of their designed capacity.

Deputy CEO of Vicem, Nguyen Thanh Tung, said "Several production lines belonging to our system have to temporarily halt operation, incurred by low consumption and dwindling incomes. Despite all this, we commit to not selling products below the production cost."

Vietnam: Amid weak domestic demand and rising costs of electricity and coal, the Vietnam Cement Association (VNCA) is focusing on boosting domestic consumption. The current domestic supply of cement is estimated at 60 – 62Mt, far exceeding demand. The excess 30Mt is planned to be exported, with cement and clinker exports already rising in April 2024 by 12% year-on-year to 2.85Mt. In the first quarter of 2024, exports grew by 4.6% to 10.9Mt compared to the same period in 2023.

The VNCA notes ‘challenging’ conditions in major markets, including China's oversupply and protectionist measures in the Philippines, Central America and South Africa. To counter these hurdles, the VNCA proposes several government-led initiatives to increase domestic consumption and help manufacturers, including tax relief on clinker exports and financial incentives such as reduced interest rates for local producers.

Vietnam: The Vietnam National Cement Association (VNCA) expects members to record a 13% drop in their gross profit in 2023 due to a 3% rise in electricity prices. At the same time, it expects cement demand to fall due to the slowing of residential construction activity. During the first quarter of 2023, Vietnamese cement exports to China fell by 90% in value terms.

Việt Nam News has reported that electricity costs constitute 15% of operating expenses for the Vietnamese cement sector.

Vietnam: Vietnam National Cement Association (VNCA) members produced 40Mt of cement during the first four months of 2023. The volume corresponds to a 4.8% drop from four-month 2022 levels.

Vietnam produced 116Mt of cement in 2022, up by 5.8% year-on-year from 2021 levels.

Vietnam: During the first ten months of 2022, Vietnam National Cement Association (VNCA) members exported 25.9Mt of cement and clinker, with a total value of US$1.16bn. Volumes dropped by 30% year-on-year from 37Mt, while the value of exports dropped by 20% from US$1.43bn.

In 2021 Vietnam exported 43.5Mt of cement and clinker, worth US$1.78bn, up by 13% year-on-year in volume and by 24% in value.

Vietnam: Vietnam National Cement Association (VNCA) members sold 77.5Mt of cement in the first nine months of 2021, up by 3.5% year-on-year. Vietnamese cement exports rose by 19% over the same period, to 31.9Mt. This corresponds to 41% of total sales. State-owned Vietnam Cement Industry Corporation (VICEM) exported 14.5Mt of cement, 45% of national cement exports. Viet Nam News has reported that the country ended the nine-month period with 3.6Mt of cement and clinker in inventory.

Vietnam: The Vietnam National Cement Association (VNCA) says that the average cement production of each integrated cement plant is 2.2Mt/yr. It alleges this is the lowest output in the Southeast Asian region, according to the Viet Nam newspaper. It further explained that 70% of the country’s plants produce less than 1Mt/yr of cement, accounting for 20% of the total output.

Vietnam: Sweden’s BillerudKorsnäs has signed a letter of intent with Vissai Group regarding the use of its QuickFill Clean (QFC) cement paper sack product line. The deal was agreed at a workshop organised by the Embassy of Sweden with the Vietnam Ministry of Construction, according to the Viet Nam News newspaper. The new type of cement bags are intended to reduce leakage although their use will require changes in the handling of sacks throughout the supply chain. Representatives from the Vietnam National Cement Association, Vietnam Federation of Civil Engineering Associations and other ministries also attended the event.

Vietnam: The Vietnam National Cement Association (VNCA) said that growing cement exports have helped domestic cement plants to slash inventories in recent years.

Vietnam produced around 70.6Mt of cement in 2014, 15% higher than 2013. Domestic consumption totalled 50.9Mt, while export sales reached 21.1Mt, up by 10% and 30% year-on-year respectively. Big producers like Vicem, Nghi Son, Chinfon, Thang Long Vina, Vissai and Thang Long contributed 80% of total cement exports in 2014. Their major markets were Bangladesh, Singapore, Hong Kong, Malaysia, the Philippines and Indonesia.

Nguyen Quang Cung, chairman of VNCA, said that the supply - demand balance would continue to improve in 2015 as demand for construction materials in the country and abroad is forecast to pick up. However, the VNCA warned that local cement enterprises would have to cope with fiercer competition at home and abroad. Cung said that Cong Thanh Cement Co would commission a 3.6Mt/yr clinker line in Thanh Hoa in June 2015. In addition, the Dong Lam and Thach My cement plants have run at full capacity so far in 2015. An imbalance between supply and demand might occur if clinker and cement exports decline as Vietnam now faces tough competition from other exporting countries like China, South Korea and Thailand.