Recently, a series of large cement manufacturers such as VICEM Bim Son, But Son, The Vissai, Thanh Thang Group Cement, Xuan Thanh Cement… have simultaneously announced an increase in product prices to offset the increase in input costs.
The price increase in this adjustment was set by businesses at VND50,000/ton. The Vissai alone increased by VND46,300/ton.
A representative of Thanh Thang Group Cement Joint Stock Company said: “The electricity price has just increased by 4.8%, while the electricity price accounts for 14-15% of the cost of products, causing the production cost to increase. Although the business has applied many solutions to cut costs and improve productivity such as taking advantage of excess heat from production lines, it has not been able to offset the production cost.”
Increasing the selling price by VND50,000/ton will help cement manufacturers to ensure stable production and business, maintaining product quality.
According to manufacturers, according to Decision No. 1046/QD-EVN of Vietnam Electricity Group (EVN), from October 11, 2024, electricity prices will increase by 4.8% compared to before. In addition, in the context of tense military conflicts in the world, causing input fuel prices such as coal, oil, etc. to fluctuate greatly, and are forecast to continue to increase in the coming time, cement cannot maintain the old selling price.
The Vietnam Cement Association (VNCA) said: “It is inevitable that manufacturers increase the selling price of cement, because for the past few years, cement has been sold below production cost. If the selling price is not adjusted to partially offset input costs, businesses will not be able to hold on.”
In fact, according to preliminary statistics from the General Department of Customs, in the first 8 months of 2024, the country exported nearly 20.55 million tons of cement and clinker, earning nearly 788.8 million USD, down 3.2% in volume and 14.5% in value compared to the first 8 months of 2023. Export prices also decreased by 11.6%, reaching an average of 38.4 USD/ton
In August 2024 alone, cement and clinker exports decreased by over 7% in both volume and value compared to July 2024 and decreased by 0.18% in price, reaching nearly 2.33 million tons, equivalent to over 90.13 million USD, with an average price of 38.7 USD/ton; compared to August 2023, it decreased by 14.3% in volume, 22.5% in value and 9.5% in price.
In the first 8 months of 2024, clinker cement exports to the Philippines market decreased by 1.8% in volume, 13% in value and 11.4% in price compared to the first 8 months of 2023, which is the largest market consuming clinker cement in Vietnam, accounting for 26.1% of the total volume and 27.2% of the total export turnover of cement and clinker of the whole country, reaching over 5.35 million tons, equivalent to 214.3 million USD, with an average price of 40 USD/ton.
Cement clinker exports to Bangladesh, the second largest market, reached 4.18 million tons, worth 133.9 million USD, with an average price of 32 USD/ton (up 5.2% in volume but down 11.4% in value and down 15.8% in price); accounting for 20.4% of the total volume and 17% of the total turnover.
Followed by the Taiwanese market, accounting for 4.8% of the total volume and 4.5% of the total turnover, reaching 994,735 tons, equivalent to 35.55 million USD, price 35.7 USD/ton (down 17.2% in volume, down 24.5% in turnover and down 8.9% in price)
It is from this clear price decrease that cement enterprises are reporting losses. The state’s intervention in clinker exports will lead to a sharp decrease in the last months of 2024 and continue in 2025. Only when the market shows more positive signs about prices will this situation have a chance to change
Source: Collected
Elly Nguyen +84 369 980 010