Vinacomin proposes to raise coal prices by 40%

The Viet Nam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin), Vietnam’s biggest coal explorer, is seeking government approval to raise coal prices sold to the cement sector by 40% from April

The Viet Nam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin), Vietnam’s biggest coal explorer, is seeking government approval to raise coal prices sold to the cement sector by 40% from April , the online newspaper VEN reported on April 6, citing the Vietnam National Cement Association.

In details, coal 4A prices rose to VND1.73 million/ton from VND1.17 million/ton, narrowing the gap between coal export prices and coal for the cement sector.

Earlier, the biggest coal explorer raised the coal export by between 8-22% to $66/ton from March 1 and coal selling to Electricity of Viet Nam (EVN) thermo-electric plants as well.

It is estimated that production cost of cement sector will climb by between 22-30% due to 40% increase in coal prices, 15.28% rise in electricity and dong devaluation of 9.3%.

Energy factor currently accounted for between 45-50% of cement production cost.

Domestic cement enterprises were predicted to raise the domestic cement prices by 150,000/ton from April 1 due to higher input material prices, the online newspaper Tuoitre reported on March 31.

The cement prices has increased by VND210,000/ton from the beginning of this year.

Vinacomin currently has 66 subsidiaries including 22 limited liabilities companies, 35 joint stock companies, 4 foreign companies and 5 administrative units. – Stoxplus.com

Tags: Vietnam Coal prices