Cement, steel set for 10% increase in sales

Cement and steel consumption in Viet Nam is expected to increase by 9 to 10 per cent to 56 million tonnes and 6.5 million tonnes, respectively, this year, according to the Ministry of Industry and Trade (MoIT).

“Demand may change if the economy strongly recovers this year because there would be an increase in construction projects,” said Nguyen Van Diep, an official of the Viet Nam Cement Association .

Diep said that during the year, about 12 new cement plants would come into operation with a total estimated output of 10.18 million tonnes per year.

He said with the new operations, the sector would fully meet domestic demand.

“One part of the cement output will be used for export,” he added

As for prices, Diep said that they would remain unchanged until Tet (Lunar New Year). “After that, however, the price will depend on the price of coal and electricity,” Diep said.

Last year, Viet Nam produced 53 million tonnes of cement. More than 50.2 million tonnes were consumed domestically.

Along with cement, steel consumption is also predicted to increase this year.

The MoIT said that the improved economic situation would push domestic construction steel consumption to 6.5 million tonnes, up 10 per cent over last year.

However, the ministry warned that the steel sector would face tough competition this year due to cheap imported steel.

Steel imported from China and ASEAN countries was more competitive thanks to more efficient production and low import tax rate, the ministry said.

MoIT said that this year’s steel price would continue to be affected by credit interest rate fluctuations and the price of steel ingots on the global market. — VNS

Tags: Vietnam cement, Vietnam cement industry