Cement consumption in the domestic market in the fourth quarter of 2022.
Cement and clinker exports last year recorded a very sharp decrease compared to last year’s performance. Although in December, the export situation of cement and clinker in traditional markets such as Taiwan, Bangladesh, Malaysia… has improved significantly, but it cannot compensate for the decline of many previous months.
Particularly in the Chinese market, it still decreased sharply because the country still maintains the Zero Covid policy and the Philippine market decreased due to the issue of imposing defensive taxes on some enterprises importing from Vietnam.
As a result, the total export volume of cement and clinker only reached 30.65 million tons, down 33% over the same period in 2021. Of which, cement exports reached 15.68 million tons, equal to 93% over the year. In 2021, clinker exports for the whole year 2022 will reach 14.97 million tons, only 80% compared to 2021.
The total value of foreign exchange earned from cement and clinker exports in 2022 will reach 1.36 billion USD, down 398 million USD compared to 2021.
Thus, the total amount of cement and clinker consumed in 2022 will only reach 93.33 million tons, much lower than last year’s 108 million tons.
In 2023, difficulties continue to surround the cement industry, production and consumption cannot be brighter because input costs continue to increase (coal prices, packaging, wages, and possibly electricity prices will be adjusted). …), while domestic consumption is still gloomy, due to slow recovery of civil construction; Disbursement of public investment capital is still slow, the real estate market is expected to continue to be quiet as the State continues to tighten the issuance of bonds and real estate credit.
Export channels do not exist because countries importing cement and clinker continue to implement many protection policies for domestic cement production and technical trade barriers (in which anti-dumping tax is imposed in the Philippines on imported goods). cement, China blockades seaports due to maintaining the Zero Covid policy expected to end in the first quarter of 2023); In addition, from January 1, 2023, Vietnam imposes clinker export tax from 5% to 10% (according to Decree No. 101/2021/ND-CP dated November 15, 2021 of the Government).
In addition, there are still difficulties from within the industry when cement supply exceeds demand (in 2023, there will continue to be a number of new cement production lines coming into operation such as Line 4 – Long Son Cement , Line 3 – Xuan Thanh Cement, Dai Duong Cement, Long Thanh Cement brings cement supply to about 120.7 million tons.
It is forecasted that domestic demand for cement is only at 64 – 65.5 million tons, leading to increasingly fierce competition in the context of cement production units facing pressure to sell their products. produced, many units had to stop the kiln/reduce kiln running capacity.
Source: Investment Newspaper
Supas Vietnam Daily Newspaper in 2022
Collector: Elly Nguyen
Sales Manager of Supas Vn
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